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Finance Mijister and Coordinating Minister of the Economy, Taiwo Oyedele has warned those agitating for the removal of fuel subsidy of dire consequences.
He said, first all all, investors will take a flight, maening foreign exchange will go down.and this could lead to the naira exchanging at N4,000/$ , leading to a worsening economic hardship.
He said reversing fuel subsidy removal would trigger capital flight and economic damage that could make Indonesia’s recent stock market crash look like “child’s play”.
Oyedele said international and domestic investors would react negatively if the Federal Government announced plans to restore fuel subsidy, potentially triggering a sharp depreciation of the naira and higher fuel prices.
He spoke at a press briefing on the sidelines of the 2026 International Monetary Fund and World Bank annual meetings in Bangkok, Thailand, while responding to questions about balancing the expectations of investors with the needs of Nigerians.
“If, for any reason, Mr. President says we are considering just that, we are considering return of subsidy on fuel, you know this thing that is happening to Indonesia, it will be a child’s play,” he said.
“Because at the end of the day, capital will leave once you say that, because they know what it means.”
The minister pointed to Indonesia’s recent stock market losses as a warning about the potential consequences of policies that undermine investor confidence.
Indonesia’s benchmark Jakarta Composite Index fell by 11.6 per cent on Friday, marking its worst performance in years, after index provider MSCI raised concerns about the country’s market accessibility and threatened to reclassify it as a standalone market.
Oyedele warned that a reversal of Nigeria’s fuel subsidy policy could prompt investors to withdraw their capital, placing additional pressure on the naira.
“So when capital leaves, your effects will struggle. So Naira crashes. 3,000, 3,500, 4,000. The fuel that they want to subsidise, they will be wishing for 1,400 per litre.”
He added that Nigerians could also move their savings away from the naira and into foreign currencies, compounding the pressure on the economy.
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