The Minister of Information and National Orientation, Mohammed Idris, has warned that any attempt to restore Nigeria’s petrol subsidy could reverse gains recorded from the economic reforms of President Bola Tinubu’s administration.
Idris made the remarks in an opinion article published in national newspapers on Monday, August 24, 2026, titled “Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains.” His comments followed a pledge by former Vice-President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to restore the subsidy if elected president in 2027.
Atiku had said he would reverse the policy, arguing that Nigerians had not seen sufficient benefits from the savings generated after the subsidy was removed. He also questioned how the funds previously spent on subsidising petrol had been used, particularly in areas such as education, healthcare, security and poverty reduction.
The former vice-president has proposed what he describes as a targeted and transparently budgeted subsidy model, rather than a return to the previous import-based arrangement. His proposal includes supplying crude oil to qualifying domestic refineries at preferential prices under strict conditions, with the aim of reducing petrol costs while encouraging local refining.
However, Idris rejected the argument for bringing back the subsidy, warning that doing so could recreate the fiscal pressures and distortions associated with the previous regime.
According to the minister, restoring the subsidy would put additional pressure on government finances, potentially weaken investor confidence and undermine the fiscal improvements the administration says have resulted from its reform programme.
Idris also questioned how the government would finance a renewed petrol subsidy without sacrificing other programmes.
“Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians?” he asked, according to reports of his article. He similarly questioned whether Nigeria should redirect funds from allocations to states and local governments or ongoing investments in roads, rail, power and security to finance fuel subsidies.
The minister further cited the cost of electricity subsidies, saying Nigeria spent ₦3.14 trillion on electricity consumption subsidies between June 2023 and December 2025. He argued that adding petrol subsidy to existing subsidy commitments would place further strain on public finances.
Tinubu announced the end of the petrol subsidy regime in his inaugural address on May 29, 2023. He said the subsidy had become increasingly costly and that resources would instead be redirected towards public infrastructure, education, healthcare and job creation.
The policy triggered a sharp increase in petrol prices and contributed to higher transportation and living costs, making subsidy removal one of the most contentious aspects of the administration’s economic reforms.
The government has nevertheless maintained that the reform was necessary to address fiscal pressures and reduce distortions in the petroleum market. Idris argued that reversing the policy could take Nigeria back to the conditions that made the former subsidy system unsustainable.
Atiku’s pledge has consequently reopened a major economic debate ahead of the 2027 presidential election. While the Tinubu administration has defended subsidy removal as a necessary reform, opposition politicians have focused on the impact of higher fuel prices and the broader cost-of-living crisis on Nigerians.
With the subsidy question likely to feature prominently in the 2027 campaign, the disagreement between the government and opposition is increasingly centred on whether Nigeria should maintain its current reform path or return to some form of government support for petrol prices.
