President Bola Tinubu has insisted that he has no regrets over the removal of petrol subsidy and other economic reforms introduced by his administration, declaring that Nigeria cannot afford to return to the policy.
The President spoke on Monday at a gathering organised by the City Boys Movement in Abuja, where he defended the reforms and urged his supporters to mobilise ahead of the 2027 general elections.
Tinubu said the country had been on the verge of financial collapse when he assumed office and could no longer sustain the cost of petrol subsidy.
“No regrets,” the President said, maintaining that reversing the policy would take Nigeria back to an unsustainable economic path.
He likened calls for a return to subsidy to asking Moses to return to Egypt after leading the Israelites out of captivity, insisting that the country must continue moving forward.
Tinubu also said Nigeria could not borrow its way to greatness, adding that the sacrifices associated with his administration’s policies would ultimately give citizens a future to believe in.
ALSO READ: Atiku’s subsidy return plan could push petrol price to N4,000/liter—APC’s Kwankwaso
He urged members of the City Boys Movement to communicate the government’s policies to Nigerians and encourage young people to participate in the electoral process.
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that any move to restore petrol subsidy could trigger capital flight, weaken investor confidence and push the naira towards N3,000, N3,500 or even N4,000 to the dollar.
Oyedele gave the warning on Monday during a press briefing following the International Monetary Fund and World Bank annual meetings in Bangkok, Thailand.
He said investors had repeatedly questioned whether the Tinubu administration would abandon its economic reforms ahead of the next election cycle.
According to the minister, even an indication that the government was considering reinstating the subsidy could prompt an immediate reaction from financial markets, increase borrowing costs and put additional pressure 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 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,” Oyedele warned.
He warned that a weaker naira could make petrol more expensive in local currency, undermining the relief that subsidy supporters hope to achieve.
Oyedele also argued that capital flight could extend beyond foreign investors, as Nigerian business owners and other investors might move their funds into dollars to protect their wealth.
However, the Director of Media and Publicity of the African Democratic Congress Presidential Campaign Council, Kola Ologbondiyan, challenged the minister to publish the economic model supporting his projection.
Ologbondiyan accused the Federal Government of using fear to discourage debate over the possible return of petrol subsidy, insisting that Nigerians deserved evidence to support the warning.
“The Minister of Finance is merely scaremongering. He cannot claim that a return to fuel subsidy will cause the naira to depreciate to N4,000 to the dollar without showing Nigerians the model behind that projection,” he said.
He questioned the basis for the projected exchange rate and called on the government to disclose the calculations behind the minister’s warning.
Ologbondiyan maintained that the debate over subsidy should be based on evidence and the potential economic implications of the policy rather than alarming projections.
The removal of petrol subsidy in May 2023 and other economic reforms have remained subjects of public debate, with Nigerians continuing to grapple with the effects of higher fuel and transportation costs.
WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TV