Why Restoring Petrol Subsidy Could Strain Nigeria’s Finances Again

Nigeria’s fuel-subsidy debate has returned, but the Federal Government argues that bringing it back would reverse gains from the 2023 reforms. It says the country spent about $10 billion on subsidies in 2022, limiting funding for education, healthcare, infrastructure and social protection. According to the government’s Reform Scorecard, subsidy removal released ₦15.8 trillion to the federation between June 2023 and December 2025. The funds were shared across the federal, state and local governments, supporting salaries, pensions, roads, security, social transfers, student loans and consumer credit initiatives. The government also argues that restoring subsidy could renew fiscal pressure, fuel scarcity and arbitrage. While acknowledging the hardship faced by Nigerians, it says the focus should be on turning the additional fiscal space into better services, jobs and living standards rather than returning to the former subsidy regime.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.