Nigeria's FG warns subsidy return could push petrol to N2,000, naira to N3,000
The Federal Government says reinstating fuel subsidy would be costly and destabilising, as it currently sells petrol at a controlled N1,350 per litre.
What happened
The Nigerian Federal Government has warned that returning to a petrol subsidy regime could push pump prices to at least N2,000 per litre and weaken the exchange rate to around N3,000 per dollar.1234
Premium Times reported that a government minister said restoring subsidy would cost the country more than N20 trillion a year and rejected calls for its return.2
Vanguard reported that the government is currently offering petrol at a controlled price of N1,350 per litre for the next 30 days, alongside warnings about future currency and fuel price risks.1
Channels Television reported the government's argument that a subsidy return would bring inflation and a weakening currency for Nigerians.4
The government currently offers petrol at a controlled price of N1,350 for a 30-day period.1
A government minister said restoring the pre-reform petrol subsidy would cost more than N20 trillion annually.2
The government argued that a return of subsidy would bring hardship through inflation and a weakening currency, with Channels Television quoting the FG's position that Nigerians would pay the price "in inflation and in a collapsing currency".4
Key points
What the coverage leaves out
- None of the outlets reviewed identified who is calling for the subsidy's return or provided their reasoning.
- None of the outlets reviewed detailed how the N20 trillion annual cost estimate or the N2,000/N3,000 projections were calculated.
- None of the outlets reviewed reported independent economist or opposition reaction to the government's warnings.
Why it matters
Sources (4)
Every outlet we drew on, grouped by where it is based. Read the originals for the full reporting.
Africa
- 1VanguardNGPrivate
- 2Premium TimesNGIndependent
Fuel subsidy would cost Nigeria over N20trn yearly — Minister
- 3PunchNGPrivate
Subsidy return could push petrol to N2,000, dollar to N3,000 — FG
- 4Channels TelevisionNGPrivate
Return Of Subsidy Could Lead To ₦2,000/Litre Petrol, ₦3,000/$ Exchange Rate — FG