Fuel Subsidy Return Could Cost Nigeria Up to ₦20tn Yearly, Oyedele Warns

Finance Minister Taiwo Oyedele has warned that restoring petrol subsidy could cost Nigeria more than ₦20 trillion each year and put salaries, pensions and other public services under pressure. He said fixing petrol at ₦500 per litre alone could require over ₦16 trillion annually. According to him, subsidy removal added ₦15.8 trillion to the Federation Account between June 2023 and December 2025, with states and local governments receiving ₦10.4 trillion. Oyedele linked the recent pump-price increase to global energy disruptions, including higher crude prices and reduced shipping through the Strait of Hormuz. He said the government would pursue local refining, naira-for-crude deals, CNG expansion, targeted support for vulnerable workers and measures to curb excessive pricing instead of restoring subsidy. He added that authorities are considering a monthly-reviewed petrol cost ceiling, a strategic fuel reserve and action against illegal levies that raise transport and logistics costs.

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