Restore petrol subsidy or fund student loans, minister question critics

Nigeria's Minister of Information and National Orientation, Mohammed Idris, has strongly opposed the restoration of the petrol subsidy, asserting that the nation has progressed beyond such a model and that its return would negate recent economic achievements.

In an Op-Ed, Idris warned that reinstating the subsidy would immediately plunge Nigeria back into the economic conditions of 2022. He predicted it would recreate fiscal pressures, distortions, scarcity, and arbitrage incentives that rendered the previous system unsustainable. The minister emphasized that restoring the subsidy would weaken investor confidence and harm the country's improving fiscal position.

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Restoring subsidy would almost instantly return Nigeria to the economic conditions of 2022, recreating the same fiscal pressures, distortions, scarcity and incentives for arbitrage that made the old system unsustainable.

Idris challenged those advocating for subsidy restoration to consider competing demands on government resources. He posed rhetorical questions: "Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians? Do we restore subsidy, or preserve higher allocations to states and local governments? Do we restore subsidy, or continue funding roads, rail, power and security?" He stressed the need to strengthen the fiscal capacity for essential services like healthcare, education, and social protection.

The minister cited figures from the "Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented," indicating that subsidy savings have bolstered resources for federal, state, and local governments. Between June 2023 and December 2025, approximately N15.8tn in resources were mobilized for the Federation, with N5.43tn going to the federal government, N6.52tn to states, and N3.88tn to local governments. Idris clarified that these are not separate funds but resources within the Federation's fiscal system, enabling increased expenditure on infrastructure, social initiatives, and support for essential services.

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Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians? Do we restore subsidy, or preserve higher allocations to states and local governments? Do we restore subsidy, or continue funding roads, rail, power and security?