Fuel subsidy return may push Naira to N4,000 per greenback – Finance Minister warns

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that returning to the gas subsidy regime may set off capital flight, undermine investor confidence and push the naira to N3,000, N3,500, and even N4,000 per greenback.

Oyedele gave the warning whereas talking on the International Monetary Fund and World Bank Annual Meetings in Bangkok, Thailand, on Monday, October 19.

The minister dominated out reversing the federal government’s financial reforms, together with gas subsidy removing, and maintained that any sign that President Tinubu’s administration was considering or reinstating the subsidy would instantly have an effect on monetary markets, elevate borrowing prices and worsen financial pressures on households.

“In all the meetings I have had, I came to a conclusion that the markets, including the domestic market, which you can read from the capital market, and the international market, have largely written off the opposition in Nigeria as being unserious.

If, for any reason, the President were to say we are merely considering the return of fuel subsidy, capital would react immediately.

Airfares would struggle, the naira would come under severe pressure, potentially moving towards 3,000, 3,500 or even 4,000. The very fuel people want subsidised would become far more expensive in naira terms.”  he mentioned