By Seun Ibiyemi
The Federal Government through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has ruled out any plan to reintroduce fuel subsidy despite rising petrol prices triggered by the ongoing Middle East conflict.
Edun made this position known on Tuesday during a media briefing of the Intergovernmental Group of 24, held on the sidelines of the launch of the April 2026 Global Financial Stability Report by the International Monetary Fund (IMF).
The minister emphasised that Nigeria would instead focus on targeted and temporary interventions to support vulnerable populations, rather than reversing key economic reforms.
According to him, the impact of the ongoing conflict particularly involving Iran on emerging economies is complex, with both positive and negative effects for oil-producing nations like Nigeria.
“It is not a one-way effect. Even oil-producing countries experience the transmission of higher costs, which feed through from gas prices to fertilizer and food prices,” Edun said.
He explained that while higher global oil prices may boost government revenues, they also increase production and living costs, thereby exerting pressure on households and businesses.
Edun stressed that Nigeria’s policy direction remains anchored on sustaining reforms introduced under President Bola Tinubu, including the removal of fuel subsidies and foreign exchange liberalisation.
He noted that although these reforms have started yielding results, external shocks have created fresh challenges, warning that reversing them would undermine long-term economic stability.
“It is important to avoid a return to generalized subsidies or a relapse into policies that have not proven successful in the past,” he said, adding that governments must prioritise support for the poorest and most vulnerable.
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His comments come as the International Monetary Fund recently downgraded Nigeria’s economic growth forecast for 2026 to 4.1 per cent, citing rising fuel, fertilizer, and shipping costs as key pressures on the economy.
IMF official Deniz Igan noted that while higher oil prices provide some support, increased costs are expected to weigh on non-oil sector performance.
Edun reiterated that building economic resilience through prudent fiscal management and targeted social interventions remains critical, as Nigeria navigates global uncertainties and domestic economic pressures.
