Fuel Subsidy Removal Has Repositioned Nigeria’s Economy – Oyintiloye

The All Progressives Congress (APC) chieftain in Osun State, Hon. Olatunbosun Oyintiloye, has described President Bola Tinubu’s removal of fuel subsidy as a bold and strategic economic reform capable of repositioning Nigeria for sustainable growth and recovery.

Oyintiloye also warned politicians seeking elective positions in the 2027 general elections against deliberately distorting facts about the subsidy removal for political gains.

He stated this while addressing newsmen in Osogbo on Sunday, saying the subsidy regime had imposed a huge financial burden on the country.

According to him, Nigerians are beginning to appreciate the necessity of the policy following the Federal Government’s decision to end the subsidy regime.

Oyintiloye, a former lawmaker, said government figures showed that petrol subsidy expenditure stood at about N4.39 trillion in 2022, adding that such resources could have been deployed to critical sectors such as infrastructure, education, healthcare, transportation and agriculture.

He said the reform became necessary because Nigeria could no longer sustainably spend trillions of naira subsidising petrol consumption while simultaneously grappling with fiscal pressures and development deficits.

The APC chieftain said the policy should be viewed beyond the immediate increase in petrol prices and understood as an attempt to correct a long-standing structural distortion in the economy.

“The decision was difficult, but Nigeria needed the courage to confront a system that had become increasingly expensive to sustain.

“We cannot continue to spend trillions of naira on subsidy while critical sectors of the economy remain underfunded.

“The resources must be redirected towards development and productive investment, and that was what President Tinubu did. We are now seeing the gains,” he said.

Oyintiloye said the removal of subsidy had offered several economic benefits, including reducing the government’s fiscal burden, improving budgetary discipline and freeing resources for development.

He also said the reform had strengthened the economic incentive for investment in domestic refining and the downstream petroleum sector.

He cited the 650,000-barrel-per-day Dangote Refinery as an important development in Nigeria’s efforts to expand local refining capacity and reduce dependence on imported refined petroleum products.

He, however, acknowledged that the policy had imposed significant short-term pressure on Nigerians, particularly through higher transportation and living costs.

“We acknowledge the hardship Nigerians are experiencing, but returning to the old system without addressing its fundamental problems would only postpone the crisis.

“The answer is to ensure that the resources freed from subsidy are converted into tangible benefits for the people, and the Tinubu administration has been doing that,” he said.

Oyintiloye urged the Federal Government to continue prioritising investments in infrastructure, mass transportation, healthcare, education, agriculture, social protection and employment-generating activities.

He stressed that the ultimate justification for subsidy removal would be measured by its impact on the productive capacity and welfare of Nigerians.

“Nigeria must move from subsidising consumption to investing in production, creating opportunities and building an economy capable of delivering sustainable prosperity,” he said.