Fuel subsidy removal has repositioned Nigeria’s economy – Oyintiloye

An All Progressives Congress, APC, chieftain in Osun State, Olatunbosun Oyintiloye, has described President Bola Tinubu’s removal of fuel subsidy as a 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 surrounding the subsidy removal for political gains.

The former lawmaker stated this while addressing journalists in Osogbo on Sunday.

He also said 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 petrol subsidy regime.”

Oyintiloye said government figures showed that petrol subsidy expenditure stood at about N4.39 trillion in 2022.

He said the funds saved from subsidy removal have been deployed to critical sectors, including infrastructure, education, healthcare, transportation and agriculture.

The APC chieftain said the reform became necessary because Nigeria could no longer sustainably spend trillions of naira subsidising petrol consumption while simultaneously facing fiscal pressures and development deficits.

He said the policy should be viewed beyond the immediate increase in petrol prices but should be understood as an attempt to correct what he described as 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,” he said.

Oyintiloye said the resources saved from the subsidy regime should be redirected towards development and productive investments.

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

He 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.

Oyintiloye 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,” 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 Nigeria’s productive capacity and the welfare of citizens.

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