With Subsidies, the Naira Could Fall to N4,000 per Dollar, Oyedele Warns

Finance Minister Taiwo Oyedele warned in Bangkok that restoring fuel subsidies could trigger capital flight, weaken investor confidence and send the naira down to N4,000 per dollar. He said investors would react immediately to any signal that President Bola Tinubu’s government might reverse its economic reforms, potentially raising borrowing costs and import prices. The African Democratic Congress’s campaign council challenged Oyedele to provide evidence and models, while its presidential candidate, Atiku Abubakar, has pledged to restore the subsidy if elected. Oyedele said the national oil company NNPC’s temporary reduction in petrol retail margins was a commercial decision, not a government-funded subsidy.