Oyedele Warns Fuel Subsidy Reversal Could Crash Naira To ₦4,000/$, Trigger Capital Flight - Arise News
Oyedele Warns Fuel Subsidy Reversal Could Crash Naira To ₦4,000/$, Trigger Capital Flight - Arise News
Source: Arise News
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DW NOTE
Oyedele is describing the mechanics of Nigeria's terminal condition. The naira trades at ~₦1,650/$ after four devaluations since 2020. Removing the fuel subsidy — which masks the true fiscal deficit — would trigger instant repricing toward ₦4,000/$, not because of speculation but because Nigeria imports refined fuel in dollars while its reserves cannot cover real demand at honest prices. Capital flight is the rational response when a government can no longer hide the gap between what it spends and what it collects. The subsidy isn't policy, it's a tourniquet.