Tinubu: Returning to fuel subsidy shows ignorance of governance, economy

President Bola Tinubu has defended his administration’s decision to remove the petrol subsidy, describing calls by one of his political opponents to reverse the policy as a “demonstration of serious ignorance on governance and the economy”.

Tinubu spoke on Thursday when he received Osun State Governor, Ademola Adeleke, at the Presidential Villa in Abuja.

The President did not identify the opponent but said he had read the person’s proposal to restore the subsidy.

“Okay, let’s look at the trajectory of history. I saw one of my opponents now say he will go back to subsidy.

“I read it. That is a demonstration of serious ignorance on governance and economy,” Tinubu said.

He argued that the removal of the subsidy had helped improve the financial position of state governments, noting that 27 states were unable to meet their salary obligations before he assumed office in 2023.

“Before I came here, 27 states were unable to pay salaries, not to even talk of pensioners, salaries of workers,” he said.

Tinubu said some state governments had depended heavily on the Federal Government to meet their obligations, adding that the inability to pay salaries affected millions of families.

“In your state. I know a man who’s nicknamed Half Salary. They come to the federal, cap in hand, unable to do anything. The salary you pay feeds families,” he said.

He argued that states remained critical to economic development because of the concentration of Nigeria’s population outside the Federal Government.

“They were at the local governments. They are in the states. Where is the concentration of population? They are in the states,” Tinubu said.

The President said state governments had responsibilities beyond the payment of salaries, including investment in infrastructure, housing, education and healthcare.

“The infrastructure you embark upon on the road network, housing, school rehabilitation, hospital, healthcare pronouncements, resuscitation of healthcare, training of teachers, training of health workers to protect our vulnerable families is part of your responsibility,” he said.

Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, triggering a sharp increase in petrol prices and widespread criticism from opposition politicians and other Nigerians.

The President has continued to defend the policy, arguing that it was necessary to protect the economy from fiscal collapse.

In May, he said the removal of the subsidy had averted imminent national bankruptcy and laid the foundation for the gradual recovery of the economy.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said on Wednesday that the removal of the petrol subsidy had saved Nigeria ₦15.8 trillion between June 2023 and December 2025.

Oyedele said the savings had increased resources available to the Federation, although they were not recorded as a separate credit to the Federation Account under the description “subsidy savings”.

“Between June 2023 and December 2025, subsidy savings mobilised the sum of N15.8 trillion in resources for the Federation,” he said.

He explained that there was no specific Federation Account credit carrying the description “subsidy savings”, as the financial benefits were reflected in the overall resources available to the Federation.