The Federal Government has warned that returning to petrol subsidy could push the pump price of petrol to at least N2,000 per litre and weaken the naira to about N3,000 per dollar within months.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, gave the projection on Thursday during a press briefing on fuel prices and the subsidy debate in Abuja.
Oyedele said restoring subsidy would reduce government revenue, potentially trigger a sovereign credit downgrade, increase borrowing costs and lead to capital flight and a fall in foreign exchange reserves.
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