President Bola Tinubu has defended his administration’s decision to remove the petrol subsidy, describing calls for its reversal as a demonstration of “serious ignorance” about governance and the economy.
Tinubu made the remarks on Thursday when he received Osun State Governor, Ademola Adeleke, at the Presidential Villa in Abuja. Although he did not identify the opponent he was referring to, the President criticised the 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.
The President argued that the subsidy regime had placed significant pressure on government finances, noting that 27 state governments were unable to meet their obligations to workers 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 also stressed the important role of state governments in providing essential services and infrastructure, including roads, housing, schools, hospitals and healthcare.
He said government’s responsibility extended to improving the welfare of ordinary Nigerians and supporting families through investments in infrastructure, education and healthcare.
The President announced the removal of the petrol subsidy during his inauguration on May 29, 2023. The decision triggered widespread criticism as petrol prices rose sharply, with opposition politicians and other stakeholders calling for the policy to be reversed.
Despite the backlash, Tinubu has consistently maintained that the decision was necessary to protect the economy and prevent further deterioration of government finances.
In May, the President said the removal of the subsidy had helped avert an imminent national bankruptcy and provided a foundation for the gradual recovery of the Nigerian economy.
Providing further insight into the financial impact of the policy, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said on Wednesday that the removal of the petrol subsidy generated N15.8tn in savings for the Federation between June 2023 and December 2025.
Speaking at a press conference on the financial impact of the Federal Government’s economic reforms under Tinubu, Oyedele explained that the savings were reflected in the resources available to the Federation, rather than appearing as a separate credit to the Federation Account labelled “subsidy savings.”
“Between June 2023 and December 2025, subsidy savings mobilised the sum of N15.8 trillion in resources for the Federation,” Oyedele said.
He added that there was no specific credit entry to the Federation Account carrying the description “subsidy savings,” explaining why the funds could not be identified as a standalone line item.
The Federal Government has continued to defend the subsidy removal as a key component of its economic reform programme, arguing that redirecting resources away from fuel subsidies will strengthen public finances and create room for investments in critical sectors.
