Fuel subsidy return would put naira, public finances at risk, Oyedele warns

Nigeria risks a naira crisis, renewed pressure on the naira and capital flight if the government reverses its economic reforms to restore fuel subsidy, Oyedele has warned.

The warning also points to danger for public finances if fuel subsidy returns.

Reform reversal

Oyedele tied the risk to any reversal of the government’s economic reforms. Restoring fuel subsidy would amount to such a reversal.

Naira pressure

The warning says the naira would come under renewed pressure and capital flight could follow.

Public finances

Public finances would also be at risk if the subsidy returns, according to the warning.