Nigeria’s Finance Minister Warns Naira Could Crash to ₦4,000 Per Dollar If Fuel Subsidy Returns
Nigeria’s Finance Minister, Taiwo Oyedele, has warned that the naira could depreciate sharply to as much as ₦4,000 against the US dollar if the Federal Government reverses its petrol subsidy removal policy.
The warning has triggered debate over the potential economic consequences of restoring fuel subsidy, with opposition parties questioning the assumptions behind the projection and demanding greater transparency from the government.
Oyedele argued that a return to subsidy could place additional pressure on public finances, undermine investor confidence and increase demand for foreign exchange, potentially weakening the naira further.
However, the projected exchange rate represents a possible scenario outlined by the minister, not a confirmed future market rate.
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Opposition parties have challenged the forecast, arguing that Nigerians deserve to see the economic calculations behind such a significant prediction.
They have also called for greater attention to domestic refining, petrol affordability and the impact of current economic policies on households and businesses.
The debate comes as Nigerians continue to grapple with the effects of fuel prices on transportation, food distribution and the cost of living.
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While the government maintains that removing subsidy is necessary to ease fiscal pressure, critics argue that the benefits of the policy must be demonstrated through improved living conditions and greater economic stability.
The central question remains whether the government can sustain its current fuel pricing policy while protecting citizens from worsening economic hardship.
