Precious Nwonu, Enugu

The Federal Government has warned that restoring petrol subsidies could trigger capital flight, weaken the naira and reverse gains made through its economic reforms.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, gave the warning during a briefing in Bangkok, Thailand, following the 2026 IMF-World Bank Annual Meetings.

Oyedele said investors had repeatedly sought assurances that the government would not reverse the removal of fuel subsidies or the unification of exchange rates, particularly as Nigeria approaches another election cycle.

He warned that any indication of a return to subsidies could undermine investor confidence, prompt capital withdrawals and increase pressure on the foreign exchange market.

The briefing was also attended by the Central Bank of Nigeria Governor, Olayemi Cardoso, and the Minister of Budget and Economic Planning, Atiku Bagudu.

The delegation clarified that the Federal Government’s 30-day petrol price reduction did not amount to a reinstatement of fuel subsidies.

Bagudu stressed the need for closer coordination between fiscal and monetary authorities to sustain the gains of ongoing reforms. The government also announced a seven per cent economic growth target.

At the meetings, Nigeria called for reforms of the International Monetary Fund and World Bank to strengthen the representation of developing economies in global financial decisions and improve their access to funding.

Presenting the Group of 24 communiqué, Oyedele said geopolitical conflicts, trade uncertainties, volatile commodity prices and climate-related shocks were threatening global growth, with emerging and developing economies bearing a disproportionate share of the impact.