President Bola Ahmed Tinubu has defended his administration’s decision to remove the petrol subsidy, insisting that reversing the policy would amount to a misunderstanding of the country’s economic realities.
The President made the position known on Thursday when he received Osun State Governor, Ademola Adeleke, at the Presidential Villa in Abuja. Tinubu was reacting to a statement by one of his political opponents who had advocated a return to fuel subsidy.
Tinubu described the call for a reversal as a demonstration of “serious ignorance on governance and economy”, maintaining that the subsidy regime had placed considerable pressure on government finances without adequately addressing the country’s structural economic challenges.
The President recalled that when he assumed office in 2023, 27 state governments were reportedly struggling to meet their obligations to workers and pensioners and had become dependent on the Federal Government for support.
According to him, the financial condition of the states had implications for millions of Nigerians whose livelihoods depended on regular payment of salaries and the provision of basic public services.
Tinubu argued that governments at the federal, state and local levels have a responsibility to invest in infrastructure and human capital, including roads, housing, schools, healthcare facilities and the training of teachers and health workers.
He said the resources required to meet these responsibilities could not be sustainably generated under an economic structure weighed down by the petrol subsidy regime.
The President announced the removal of the fuel subsidy during his inauguration on May 29, 2023. The policy immediately triggered widespread debate and criticism, particularly over the resulting increase in petrol prices and its impact on transportation, food prices and the general cost of living.
Despite the challenges associated with the policy, Tinubu has consistently maintained that subsidy removal was necessary to protect the Nigerian economy from deeper fiscal distress. He had earlier said the decision helped avert what he described as an imminent national bankruptcy and created a foundation for economic recovery.
The latest defence of the policy came a day after the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that the removal of the petrol subsidy generated ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
Oyedele explained that the amount did not appear as a separate credit to the Federation Account under the description of “subsidy savings”, but represented resources made available to the Federation as a result of the policy.
The minister’s disclosure has provided the Federal Government with another basis for arguing that subsidy removal has significantly altered Nigeria’s fiscal position and increased the resources available to the three tiers of government.
Tinubu’s latest comments therefore reinforce his administration’s position that the subsidy policy will not be reversed, despite continued calls from opposition figures and sections of the public for its reconsideration.
The President maintained that the ultimate objective of the reforms is to create a more sustainable economy capable of supporting government responsibilities, funding development and improving the welfare of Nigerians over the long term.