FG Warns Subsidy Return Could Push Petrol to ₦2,000 Per Litre and Dollar to ₦3,000

The Federal Government has defended the removal of fuel subsidy, warning that restoring it could raise petrol prices to at least ₦2,000 per litre and weaken the naira to nearly ₦3,000 per dollar. At a briefing in Abuja, a government economic official said renewed subsidy spending could trigger credit-rating concerns, higher borrowing costs, capital outflows and pressure on Nigeria's foreign reserves. The official argued that any subsidy would have to be funded through delayed public payments, higher taxes or money creation. The government said it remains open to proposals for a subsidy return, but wants proponents to state the cost, funding source and expected pump price.

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