By Annette Ikponmwonba | August 24, 2026
Key Points
- Information Minister Mohammed Idris has rejected calls to restore petrol subsidy.
- He argued that restoring the subsidy would weaken Nigeria’s fiscal position and reverse economic gains.
- Subsidy removal mobilised N15.8 trillion in resources for the Federation between June 2023 and December 2025.
- The Federal Government received about N5.43 trillion, states N6.52 trillion and local governments N3.88 trillion.
- The government recorded N6.47 trillion in additional strategic infrastructure expenditure during the period.
- Idris said more than N400 billion was committed to major social investment programmes.
- He questioned whether Nigeria should restore petrol subsidy at the expense of student loans, infrastructure, healthcare and social protection.
- Nigeria also carried an estimated N3.14 trillion electricity subsidy between June 2023 and December 2025.
Main Story
The Minister of Information and National Orientation, Mohammed Idris, has challenged critics calling for the restoration of petrol subsidy to consider the competing demands on government finances, Idris said restoring the subsidy would undermine Nigeria’s improving fiscal position, weaken investor confidence and reverse some of the economic gains recorded since the policy was removed.
The minister made the remarks in an opinion article titled “Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains,” published in some national newspapers on Monday, According to Idris, returning to the previous subsidy regime could recreate the fiscal pressures, market distortions, fuel scarcity and arbitrage opportunities that made the system unsustainable.
He argued that the debate should consider what government would have to sacrifice to finance a renewed petrol subsidy, “Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians?” Idris asked, while also questioning whether subsidy should take priority over allocations to states and local governments, infrastructure, security, healthcare and education, The minister cited figures from the Federal Government’s Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented, which stated that subsidy savings mobilised N15.8 trillion in resources for the Federation between June 2023 and December 2025.
Of that amount, approximately N5.43 trillion accrued to the Federal Government, N6.52 trillion to states and N3.88 trillion to local governments, Idris clarified that the N15.8 trillion was not a separate pool of money but represented resources released within the Federation’s wider fiscal system following the reform.
The Issues
The central issue is the tension between fiscal sustainability and the rising cost of living following petrol subsidy removal, While the government argues that subsidy removal has released resources for infrastructure and public services, households and businesses have faced higher transportation and operating costs since the policy change.
Idris maintained that restoring subsidy would create another major fiscal obligation at a time when the government is already dealing with significant expenditure pressures, He noted that Nigeria carried an estimated N3.14 trillion electricity subsidy between June 2023 and December 2025.
Adding petrol subsidy to the existing electricity subsidy burden, he argued, could further constrain government finances and reduce the resources available for other priorities, The minister also pointed to the allocation of additional resources towards infrastructure and social programmes as evidence of what the reform has enabled.
What’s Being Said
Idris said the N15.8 trillion in resources mobilised through subsidy savings had strengthened the ability of the three tiers of government to meet salary and pension obligations and fund essential services, He said the Reform Scorecard recorded approximately N6.47 trillion in additional expenditure on strategic infrastructure.
More than N400 billion was also committed to major social investment initiatives, including the Nigeria Education Loan Fund (NELFUND), MOFI Real Estate Investment Fund (MREIF) and the Nigerian Consumer Credit Corporation (CREDICORP), The minister added that social transfers had reached more than 10 million Nigerian households.
He also said the organised private sector and wider economic community had cautioned against reversing the subsidy reform, According to Idris, Nigeria should focus on building a more productive economy rather than returning to what he described as an unsustainable subsidy model.
What’s Next
The Federal Government is expected to continue defending petrol subsidy removal while focusing on how the resources released through the reform are deployed, The key test will be whether those resources produce measurable improvements in infrastructure, education, healthcare, social protection, employment and economic productivity.
At the same time, continued pressure over petrol prices and the cost of living could keep calls for intervention alive, The government will therefore have to demonstrate that the fiscal benefits of subsidy removal are translating into tangible improvements in citizens’ welfare.
Bottom Line
Mohammed Idris’ argument is that Nigeria cannot sustainably restore petrol subsidy without sacrificing other priorities, With N15.8 trillion in resources reportedly mobilised between June 2023 and December 2025, the government believes subsidy removal has created additional fiscal space for infrastructure, social programmes and other public expenditure.
However, the success of the policy will ultimately depend on whether Nigerians can see meaningful benefits from that fiscal space, The debate is therefore no longer simply about subsidy versus no subsidy, but about whether the resources saved by removing petrol subsidy are being converted into better public services, stronger infrastructure and improved economic opportunities.
