Again, finance minister warns towards gasoline subsidy reversal

Finance Mijister and Coordinating Minister of the Economy, Taiwo Oyedele has warned these agitating for the elimination of gasoline subsidy of dire penalties.

He stated, first all all, traders will take a flight, maening international change will go down.and this might result in the naira exchanging at N4,000/$ , resulting in a worsening financial hardship.

He stated reversing gasoline subsidy elimination would set off capital flight and financial harm that might make Indonesia’s latest inventory market crash appear like “child’s play”.

Oyedele stated worldwide and home traders would react negatively if the Federal Government introduced plans to revive gasoline subsidy, probably triggering a pointy depreciation of the naira and better gasoline costs.

He spoke at a press briefing on the sidelines of the 2026 International Monetary Fund and World Bank annual conferences in Bangkok, Thailand, whereas responding to questions on balancing the expectations of traders with the wants of Nigerians.

“If, for any reason, Mr. President says we are considering just that, we are considering return of subsidy on fuel, you know this thing that is happening to Indonesia, it will be a child’s play,” he stated.

“Because at the end of the day, capital will leave once you say that, because they know what it means.”

The minister pointed to Indonesia’s latest inventory market losses as a warning in regards to the potential penalties of insurance policies that undermine investor confidence.

Indonesia’s benchmark Jakarta Composite Index fell by 11.6 per cent on Friday, marking its worst efficiency in years, after index supplier MSCI raised considerations in regards to the nation’s market accessibility and threatened to reclassify it as a standalone market.

Oyedele warned {that a} reversal of Nigeria’s gasoline subsidy coverage may immediate traders to withdraw their capital, inserting further strain on the naira.

“So when capital leaves, your effects will struggle. So Naira crashes. 3,000, 3,500, 4,000. The fuel that they want to subsidise, they will be wishing for 1,400 per litre.”

He added that Nigerians may additionally transfer their financial savings away from the naira and into foreign exchange, compounding the strain on the financial system.