Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that restoring petrol subsidy could weaken the naira and push the exchange rate to between ₦3,000 and ₦4,000 per dollar, Peak Newspaper reports.
Oyedele gave the warning on Monday, October 19, 2026, during a press briefing on the sidelines of the International Monetary Fund and World Bank Annual Meetings in Bangkok, Thailand. He said reversing the subsidy removal policy could trigger capital flight as investors lose confidence in Nigeria’s economic direction.
According to the minister, even an announcement that the Federal Government was considering bringing back the subsidy could unsettle financial markets, increase borrowing costs and put additional pressure on the naira.
He warned that investors, businesses and wealthy individuals could move their funds into foreign currencies, increasing demand for dollars and weakening the local currency. The resulting depreciation, he said, could make imported goods and petroleum products more expensive, undermining the intended benefits of cheaper petrol.
Oyedele maintained that the government would not reverse its economic reforms, including the removal of petrol subsidy and the unification of foreign exchange rates. He also clarified that the Nigerian National Petroleum Company Limited’s temporary reduction in petrol retail margins was a commercial decision, not a return to government-funded subsidy.
The warning comes amid growing public debate over fuel prices and the rising cost of living, as political parties begin positioning themselves ahead of the 2027 general elections.
