No Subsidy Return Even as Petrol Prices Climb, Says Finance Minister
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed any possibility of reintroducing fuel subsidies, even as petrol prices surge due to escalating tensions in the Middle East.
Speaking during a media briefing of the G-24 on the sidelines of the April 2026 Global Financial Stability Report launch by the International Monetary Fund on Tuesday, Edun emphasized that the government would not reverse its economic reforms.
Instead, he said Nigeria and other oil-producing nations should focus on targeted and temporary support for vulnerable citizens rather than broad subsidy measures.
Addressing concerns over the economic fallout from the ongoing Iran-related conflict, Edun explained that the impact on emerging economies is complex. While higher global oil prices boost government revenues for oil exporters like Nigeria, they also trigger increases in gas, fertilizer, and food costs.
“It is not a one-way effect,” he noted, adding that rising energy costs ripple through multiple sectors, worsening inflationary pressures.
Edun stressed that countries must build economic resilience by utilizing existing buffers and prioritizing short-term assistance for the most vulnerable populations. He cautioned against reverting to subsidy regimes, describing them as ineffective in achieving long-term stability.
The minister also defended the economic reforms introduced in 2023 under President Bola Tinubu, including the removal of fuel subsidies and the liberalisation of the foreign exchange market. According to him, while the reforms have started yielding results, external shocks have slowed progress.
He warned that rolling back these policies would undermine economic gains, reiterating that targeted interventions remain the best approach.
Meanwhile, the IMF has revised Nigeria’s 2026 growth forecast downward from 4.4 percent to 4.1 percent, citing mounting global and domestic pressures. According to IMF official Deniz Igan, higher fuel, fertilizer, and shipping costs are expected to weigh on non-oil sectors, despite some gains from increased oil prices.
The current spike in petrol prices has been linked to disruptions in global oil supply following heightened conflict in the Middle East, including tensions involving the United States, Israel, and Iran, which have affected shipments through the Strait of Hormuz.
Domestically, petrol prices have jumped from about ₦799 per litre to roughly ₦1,200, following price adjustments by the Dangote Refinery. Analysts warn that prices could climb further—potentially reaching ₦2,000 per litre—if the crisis persists without government intervention.
