Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has cautioned that reversing the removal of fuel and forex subsidies would severely harm the country’s economy. Edun emphasized that any future administration attempting to reinstate these subsidies would undermine the gains achieved by President Bola Tinubu’s government.
Edun highlighted that the removal of these subsidies has significantly reduced Nigeria’s debt service burden, lowering the percentage of revenue spent on servicing debt from 98% to 61%. He warned that reversing these policies would force the government to borrow heavily to cover basic responsibilities, including paying salaries and constructing infrastructure.
The Minister firmly stated that restoring the subsidies would lead to increased debt, potentially pushing the country towards bankruptcy and collapsing the governance system.