₦airaland Forum

Public Affairs commentator, Mahdi Shehu has accused the Federal Government of using the removal of fuel subsidy to protect corruption rather than ending it.

In a post shared on X on Wednesday, Shehu described the policy as the biggest scam, theft and corruption in the history of Nigeria, while comparing past subsidy payments with recent spending claims by the Nigerian National Petroleum Company Limited (NNPCL).

According to him, the total amount paid as fuel subsidy for 2021 and 2022 stood at ₦5.7 trillion for the two years combined.

He, however, questioned NNPCL’s claim that it spent ₦17.5 trillion between January and December 2025 to secure oil pipelines.

“Subsidy removal did not curb corruption, it nurtured and protected it,” Shehu wrote.

He further argued that despite the removal of subsidy, Nigeria has continued to borrow heavily.

“Even with the so-called subsidy removal, we still keep borrowing to stop borrowing,” he said.

Shehu also alleged that a powerful group was benefiting at the expense of ordinary Nigerians.

“From all intents and purposes, we have a clique, cartel and cabal whose main aim is to pauperise 250 million people and eventually destroy Nigeria,” he claimed.

Source: https://dailypost.ng/2026/02/04/subsidy-removal-nurtured-corruption-big-scam-mahdi-shehu

NNPC keeps paying subsidy to importers in a bid to keep them competitive against Dangote ....Tinunbus interests in downstream is the major flaw of his govt , if he didn't have there interest the economy would have been a lot better

adenigga:
He, however, questioned NNPCL’s claim that it spent ₦17.5 trillion between January and December 2025 to secure oil pipelines.

17.5 trillion naira to secure pipelines? Wow! The cashing out continues. I trust NNPC.

BTW, I agree with Mr Shehu that removing subsidies did not really fix the problem since it merely created new problems. When you rob the people to enrich the government, saying you can't can't fight thieves, that is not an achievement.

That's what you get when someone(Tinubu) decides to leave the core problem and focus on cosmetic solution because of dirty politics, how can you remove subsidy then channel the funds to share and buy state governors to join APC.

The problem of Nigeria petrol was not the subsidy but the corruption that was going on in the subsidy that he was supposed to tackle, instead of tackling the corruption, he channeled the corruption into growing a bigger corruption, the citizens are paying more, the borrowings are more while the politicians are getting more money from the corruption..

FarahAideed:
NNPC keeps paying subsidy to importers in a bid to keep them competitive against Dangote ....Tinunbus interests in downstream is the major flaw of his govt , if he didn't have there interest the economy would have been a lot better

NNPC is still paying subsidies to anyone? You have any proof or reason to say this?

Omorr , how can pipeline protection cost be more than subsidy cost

That Aso villa Bandit is terrible

In as much as there are elements of truth in his positions but these northerners are funny. They were all quiet when PMB was in charge.


FG need to open up on how much it has been saving from subsidy.

We all know subsidy was a scam. Don’t come here to deceive us because your free money has been blocked.

What’s the link between subsidy removal and pipeline protection. This guy is just blabbing

17.5 trillion naira just to secure oil pipelines for one year . Please, someone should tell me that that isn't true.

adenigga:
Source: https://dailypost.ng/2026/02/04/subsidy-removal-nurtured-corruption-big-scam-mahdi-shehu

Where did he get the 17.5 trillion naira from? He should have provided us with the source of the information from the NNPC report and not just be quoting any figures

According to him, the total amount paid as fuel subsidy for 2021 and 2022 stood at ₦5.7 trillion for the two years combined.

He, however, questioned NNPCL’s claim that it spent ₦17.5 trillion between January and December 2025 to secure oil pipelines

The guy doesnt know why we borrow, and also builds a strawman, that subsidy removal was supposed to mean removal of corruption and also ending of borrowing.

We borrow because we rely mostly on oil for our revenue for government, and the oil price never favours us.

Infact as put in 2004, by this article..

The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc. The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy. This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty[/b].

And we are corrupt, even now under tinubu, because our government runs a share the money economics.Hence the 17.5 bn contract for pipeline security, which in intself is an indication of bad government...there won't be need for that if the police was secure financially and if we was running an economy based on manufacturing , not just on sharing oil money.

How did Nigeria spend 17.5 trillion to protect pipelines last year? The entire crude oil sales Nigeria made last year was 55 trillion naira. And over 20% of that is said to have been spent protecting pipelines? Haba now? What kind of daylight robbery is this?

I keep saying it that removal of subsidy is a scam on its own.

Watch how APC gbegiri merchants will come and tell you how subsidy removal has made Nigeria better than Switzerland and Finland combined together.

This APC government (especially Tinubu's admin) is more corrupt than the PDP government they were accusing of corruption before 2015.

I spit on them and their yeye supporters.

.......despite the removal of subsidy, Nigeria has continued to borrow heavily.

All corrupt politicians in our darling nation must die....

From all intents and purposes, we have a clique, cartel and cabal whose main aim is to pauperise 250 million people and eventually destroy Nigeria,”

All cartels and clique eating our national cake all among themselves shall choke and kpai untimely.

The only good thing that emanates from subsidy removal is the curbing of scarcity. Others na scam.

FarahAideed:
NNPC keeps paying subsidy to importers in a bid to keep them competitive against Dangote ....Tinunbus interests in downstream is the major flaw of his govt , if he didn't have there interest the economy would have been a lot better

What subsidy are they paying, please dont misinform the Public ... subsidy is gone Buh looting & wasteful spending is predominant

Abeg someone should show me where NNPC spend 17 trillion on pipeline security. It unbelievable

JuanDeDios:
NNPC is still paying subsidies to anyone?

You have any proof or reason to say this?

If Tinubu as the president and petroleum minister is not paying subsidy till tomorrow, then why is he borrowing more than PDP presidents who gave us cheap petrol and less unemployment, less insecurity etc

If he is borrowing more than PDP presidents after hitting his higher revenue target in August then what else is he doing with all the money apart from stealing it? Stealing money to buy votes and bribe politicians for 2027 and a 3rd term agenda.



https://www.youtube.com/watch?v=Bn29b0SkCWU

Subsidy removal meant the money can now be stolen wholesale without any benefit to the general public through cheaper petrol.

The senators are not flying around on private jets and hotchicks using their salaries

U09ce:
Abeg someone should show me where NNPC spend 17 trillion on pipeline security. It unbelievable

Kindly check this news report below.

NNPC’s N17.5tn pipeline security, fuel subsidy bill
December 11, 2025 12:20 am



https://punchng.com/nnpcs-n17-5tn-pipeline-security-fuel-subsidy-bill/

Seems some people are still very angry that the siphoning through subsidy channel is now close

Fred2020:
@ the bolded, buy yourself a wig and paint yourface white. You already act the part, all you need is the custome.

Yes, you have no comment and knowledge to respond to me, so you resort to abuse.

Thanks. Good afternoon.

Resource dependency

FarahAideed:
NNPC keeps paying subsidy to importers in a bid to keep them competitive against Dangote ....Tinunbus interests in downstream is the major flaw of his govt , if he didn't have there interest the economy would have been a lot better

Do you think it its cos of Dangote? I just think its a way of stealing money cos no audit on the subsidy, they cant just say they imported XYZ, however they shot themselves in the foot when they claimed the removed subsidy and they did not.

Ft

reddingtonblack:
What subsidy are they paying, please dont misinform the Public ... subsidy is gone Buh looting & wasteful spending is predominant

Go and read the report about the payment of subsidy in 2024/2025

oluwaseyi0:
Seems some people are still very angry that the siphoning through subsidy channel is now close

YOu know some of us Nigerians are not that clever even with the Internet, So you truly believed they removed subsidy just cos they said so

nairalanda1:
Yes, you have no comment and knowledge to respond to me, so you resort to abuse.

Thanks. Good afternoon.

Resource dependency

Please keep your abundant knowledge, here is nigeria's debt chart

Resurgent2016:
Please keep your abundant knowledge, here is nigeria's debt chart

Yeah, which I kind of wrote about in my first comment on the thread. Pay attention to the bolded bit, and the chart would be clearer.

Our debt rises largely because we rely on oyel. When the price falls, we borrow more and thus our debt goes up. Throw in the fact that the party that is running this country now hasn't since 2015 changed anything about the economy...,like making it more diversified and industrial and productive, instead keeping it on oil while hoping the oil price goes up..lol...and you see why the debt is bad,

So, you see, we agree. Just in different ways.