The Federal Government has warned that a return to the fuel subsidy can trigger capital flight, put pressure on the naira, and undermine the gains of its economic reforms.
The warning came at a media briefing in Bangkok, Thailand, at the conclusion of the 2026 IMF-World Bank Annual Meetings.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele; the Governor of the Central Bank of Nigeria, Olayemi Cardoso; and the Minister of Budget and Economic Planning, Atiku Bagudu, addressed Nigeria’s economic outlook following the conclusion of the meeting.
The finance minister said investors have repeatedly sought assurances that the government will not reverse the removal of fuel subsidy or the unification of exchange rates, particularly as the country approaches another election cycle.
Oyedele argued that any signal of a possible return to subsidies could prompt investors to withdraw their capital, putting pressure on the foreign exchange market and the naira.
The Minister of Finance and the Central Bank Governor arrive for the final briefing by the Nigerian delegation to the 2026 IMF-World Bank Meetings in Bangkok, Thailand.
After five days of deliberations, the delegation highlighted some of the key takeaways from the event, especially as they impact the administration’s economic policies.
It clarified the decision to discount the retail price of Premium Motor Spirit (PMS).
The delegation also announced the Federal Government’s seven per cent economic growth target.
In his remarks, the Minister of Budget and Economic Planning emphasised the need for fiscal and monetary authorities to work together to sustain the gains of the reforms.
Debt, climate, AI, and inequality topped the agenda at the World Bank-IMF meeting attended by Nigeria and 190 other countries in Thailand.
At the meeting, Nigeria called for comprehensive reforms of the IMF and the World Bank to give developing economies a strong voice in global financial decisions, improve access to financing and strengthen their capacity to withstand economic shocks.
While presenting the Group of Twenty-Four (G-24) 2026 annual meeting communiqué in Bangkok, Thailand, on the sidelines of the World Bank/IMF Annual Meetings, Oyedele said geopolitical conflicts, trade uncertainties, volatile commodity prices and climate shocks are threatening global economic growth.
According to him, the challenges disproportionately affect emerging markets and developing economies, undermining efforts to create jobs and achieve inclusive transformation.
