Tinubu Has No Reason to Regret Fuel Subsidy Removal, Group Insists

The Tinubu Media Support Group (TMSG) has defended President Bola Tinubu’s decision to remove fuel subsidy, arguing that the economic and fiscal gains outweigh calls by opposition politicians for its restoration.

The group said the policy had increased revenue available to federal and state governments, expanded funding for social programmes and created room for major infrastructure investments.

In a statement jointly signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, TMSG maintained that recent developments had justified the President’s decision.

It expressed surprise that the debate over subsidy removal persisted, describing promises by opposition presidential candidates to restore the policy as political moves ahead of the January 2027 election.

The group said the removal had significantly improved revenue allocation to the 36 states and the Federal Capital Territory (FCT).

It cited a recent World Bank report indicating a 93 per cent increase in revenue accruing to the states and the FCT.

Although critics have attributed part of the increase to the depreciation of the naira, TMSG argued that state governments now have greater capacity to execute capital projects.

It added that states could also settle inherited debts and clear outstanding salary arrears more effectively than before.

The group maintained that governors who had recorded improvements in infrastructure delivery owed part of their progress to the additional funds available following subsidy removal.

At the federal level, TMSG said the policy had created fiscal space for social interventions, including the Nigerian Education Loan Fund (NELFUND).

It noted that more than 1.5 million students had benefited from the student loan scheme in less than two years.

The group also pointed to the expanded targeted cash transfer programme, which it said had reached 10 million households across the country.

On infrastructure, TMSG said increased government revenue had supported capital projects and accelerated work on major initiatives inherited from previous administrations.

It specifically mentioned the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, which it said was nearing completion under the Tinubu administration.

The group also linked the policy to improved funding for tertiary institutions, arguing that universities had enjoyed relative industrial stability since May 2023.

It noted that the country had not experienced a nationwide university strike since Tinubu assumed office, describing the development as one of the gains of improved funding for the education sector.

On the foreign exchange market, TMSG argued that subsidy removal had reduced pressure on Nigeria’s foreign reserves.

It said the government no longer needed to spend scarce foreign exchange on subsidising imported petrol, adding that this had supported exchange rate stability.

The group further cited the operations of the Dangote Refinery as evidence of the benefits of ending the subsidy regime.

According to TMSG, the refinery’s operations have benefited from the government’s decision to stop paying subsidies on imported petroleum products.

The group also criticised proposals by some opposition figures, including former Vice President Atiku Abubakar, to restore fuel subsidy if elected in January 2027.

It acknowledged that rising petrol prices had worsened the cost of living but argued that the pressure reflected broader global economic challenges.

TMSG attributed part of the current hardship to the international cost-of-living crisis, which it linked to conflicts in the Middle East.

It therefore urged Nigerians to shift attention from calls for subsidy restoration to ensuring that state governments translate increased allocations into tangible improvements in citizens’ lives.

The group also urged the Federal Government to pursue policies that would ease the impact of subsidy removal.

It said it expected Tinubu to accelerate the deployment of Compressed Natural Gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.

TMSG described these measures as essential to ensuring that Nigerians benefit from the economic changes arising from subsidy removal.