The Federal Government has firmly ruled out any return of petrol subsidy in Nigeria, even as global oil prices continue to surge due to rising geopolitical tensions in the Middle East. The position comes amid growing public concern over the rising cost of living and increased fuel prices across the country.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, restated the government’s stance during a media briefing of the G-24 on the sidelines of the IMF’s April 2026 Global Financial Stability Report launch. He said the administration remains committed to its economic reforms, including the removal of fuel subsidy and liberalisation of the foreign exchange market introduced in 2023.
In recent weeks, calls for the return of fuel subsidy have intensified as global crude oil prices crossed $100 per barrel, pushing up fuel costs in Nigeria and triggering inflation across essential goods and services. While some citizens and stakeholders have urged government intervention, officials argue that a reversal would undermine long-term economic stability.
Edun maintained that although the reforms have faced external shocks, they are beginning to yield positive outcomes and continue to receive backing from international financial institutions. He stressed that instead of reversing policy direction, government efforts should focus on targeted support for vulnerable Nigerians rather than reinstating broad-based subsidies.
Also speaking on the fiscal implications, Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, warned that a return to subsidy under high oil prices could have pushed Nigeria’s subsidy burden to between N38 trillion and N52 trillion annually—potentially consuming up to 76% of the proposed 2026 national budget. He said this underscores why the policy was fully removed, adding that maintaining fiscal discipline is critical to Nigeria’s economic future.
source: daily trust