Fuel Subsidy Return Could Push Naira to N4,000 per Dollar, Oyedele Warns

Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele warned that restoring the petrol subsidy could trigger capital flight and push the naira to between N3,000 and N4,000 per dollar. Speaking Monday at the IMF and World Bank Annual Meetings in Bangkok, he said even a signal that the government was considering reinstatement could unsettle markets, weaken investor confidence and raise borrowing costs. He added that wealthy Nigerians and domestic investors might also shift into dollars, putting further pressure on the exchange rate. Oyedele said the NNPC’s temporary cut to petrol retail margins was a commercial decision, not a subsidy funded by public resources.