The Federal Government has ruled out any return of petrol subsidy in Nigeria, despite the recent surge in global oil prices driven by escalating tensions in the Middle East. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated this during a media briefing of the G-24 on the sidelines of the launch of the April 2026 Global Financial Stability Report by the International Monetary Fund, warning that any reversal of the policy direction would undermine economic stability.
Edun noted that while the reforms under President Bola Tinubu, including the removal of petrol subsidy and liberalisation of the foreign exchange market, were beginning to show positive results, they had been negatively affected by external shocks beyond the country’s control. He stressed that returning to broad-based subsidies would constitute a relapse into policies that have not proven successful in the past, adding that the priority now was to protect vulnerable citizens through targeted interventions rather than reversing ongoing reforms.
The demand for subsidy reintroduction has intensified following renewed tensions in the Middle East, which pushed global oil prices above $100 per barrel and triggered a sharp increase in fuel prices at home, with a corresponding rise in the cost of goods and commodities. Experts have urged the Federal Government to intervene in the situation, warning that the ongoing geopolitical tensions show no immediate signs of abating and could further worsen inflationary pressures.
Chairman of the Nigeria Revenue Service, Zacch Adedeji, warned that at a benchmark oil price of $120 per barrel, Nigeria’s subsidy bill could have risen to between N38 trillion and N52 trillion annually. He said such a scenario would have consumed about 56 to 76 per cent of the proposed N68 trillion 2026 national budget, underscoring the fiscal burden that informed the decision to fully remove the subsidy. Edun added that governments must rely on fiscal buffers built over time to absorb shocks, while ensuring that relief measures remain targeted and temporary, especially for the poor and most vulnerable.
