₦airaland Forum

5 STRONG REASONS WHY I SUPPORT ATIKU’S POSITION ON FUEL SUBSIDY

Opinion:

By PastorKay

The debate over fuel subsidy has once again taken centre stage in Nigeria’s political and economic conversation. However, before Nigerians dismiss Atiku Abubakar’s proposal simply because of the word “subsidy,” we must carefully examine what he is proposing and the potential impact it could have on the lives of ordinary Nigerians. I support Atiku’s position because Nigeria must begin to put the welfare of its citizens at the centre of economic policies. Economic reforms are important, but reforms that bring unbearable hardship to millions of citizens must be constantly reviewed.

1. NIGERIANS NEED URGENT RELIEF FROM THE HIGH COST OF LIVING

The cost of living in Nigeria has become unbearable for many families. Food prices have risen, transportation has become expensive and businesses are struggling with high energy costs. Fuel is connected to almost every aspect of the Nigerian economy. When the price of fuel rises, transportation costs increase. When transportation costs increase, the prices of food and other essential commodities are affected. A policy that successfully reduces the cost of fuel could therefore bring significant relief to millions of Nigerians. Economic reform must not only look good in government reports and economic statistics. The ordinary Nigerian must be able to feel the benefits.

2. CHEAPER FUEL COULD HELP REDUCE TRANSPORTATION AND FOOD COSTS

The price of fuel does not end at the filling station. It affects the cost of moving people, goods and agricultural products across the country. Farmers need transportation to move their produce from rural communities to the cities. Traders need transportation to move goods. Workers spend a significant part of their income on transportation every day. When transportation becomes expensive, almost everything becomes expensive. If a properly designed policy helps reduce the cost of fuel and energy, it could help reduce transportation costs and ease some of the pressure on food prices and other essential goods. This means the benefits could go beyond motorists and reach ordinary families across Nigeria.

3. NIGERIA SHOULD SUPPORT LOCAL PRODUCTION, NOT ENRICH MIDDLEMEN

One of the strongest reasons I support a new approach to fuel subsidy is the need to move away from a system that benefits middlemen and towards one that strengthens Nigerian production. Nigeria is an oil-producing nation. It is unacceptable for a country blessed with enormous petroleum resources to remain permanently dependent on importing refined petroleum products. Any government intervention should focus on strengthening domestic refining, encouraging local production and ensuring that Nigerians benefit directly from the resources of their country. Nigeria should not spend public money enriching a few individuals. Nigeria should use its resources to strengthen industries, create jobs, increase local production and reduce the cost of living for its people.

4. TRANSPARENCY AND ACCOUNTABILITY MUST REPLACE THE OLD SYSTEM

Let me be clear: supporting a new approach to subsidy does not mean supporting corruption. Nigeria cannot afford a return to an open-ended system where public funds disappear without accountability. Any subsidy or government intervention must have a clear structure, a known budget and strict public accountability. Nigerians must know how much money is being spent, who is benefiting and what the country is receiving in return. There must be independent monitoring and auditing. There must be consequences for corruption. There must be transparency at every stage. If public money is being spent in the name of helping Nigerians, then Nigerians must actually see and feel the benefits. The days of using subsidy as a cover for enriching powerful individuals must never return.

5. THE WELFARE OF THE PEOPLE MUST BE THE PURPOSE OF ECONOMIC POLICY

The ultimate purpose of every government is the welfare and security of its people. An economy is not successful simply because certain statistics have improved. Economic growth must translate into better lives for ordinary citizens. Nigeria needs investment. Nigeria needs fiscal discipline. Nigeria needs reforms. But Nigeria also needs leaders who understand the daily struggles of the people. The Nigerian people should not be expected to suffer endlessly in the name of economic reform. Government must find a balance between building a strong economy and protecting citizens from extreme hardship. A good economic policy must not only satisfy economists and international institutions. It must also put food on the table, make transportation affordable, support businesses and give ordinary citizens hope.

MY POSITION

I do not support corruption in the name of subsidy. I do not support enriching middlemen with public funds. I do not support an irresponsible system that will destroy Nigeria’s finances. But I strongly support any transparent and accountable policy that will reduce the suffering of Nigerians, strengthen local production, create jobs and lower the cost of living. The real question is not simply whether government should intervene in the fuel sector. The real question is whether that intervention will genuinely benefit the Nigerian people. Nigeria must move away from policies that enrich a privileged few and embrace policies that put the people first. If Atiku’s proposed approach can genuinely strengthen domestic production, reduce energy costs, lower transportation expenses and bring relief to struggling Nigerians, then it deserves serious national consideration.

Nigeria should not subsidise corruption. Nigeria should not subsidise middlemen. Nigeria should support production. Nigeria should protect its people. And above all, Nigeria must ensure that every naira of public money works for the benefit of the Nigerian people.

PastorKay is a
Public Commentator and Social Activist

Well bringing in a subsidy would do the opposite of what you want.

See the electricity sector. A subsidy has been maintained on the electricity sector for decades, the APC government won't remove it at all...and the result is a sector that can barely manage to produce up to a third of the electricity NIgeria needs.

A subsidy on fuel would end the ability of the sector to make a profit, and lead to its downfall. That is what happened with the NNPC refineres. They were prevented from making a profit in the name of subsidy, and as a result could not fund running, expansion and upgrade costs at all atall, and whatever money was made from periodic partial removals of subsidy was spent on government bonanza projects. Result, we lost domestic refining and ended up throwing away foreign exchange...importing fuel AND subsidizing it.

If you want a subsidy, either do as they do in saner climes and pay the tax for it, or forget about it. Nothing in this world runs witout it making enough money. People want to be paid.

I keep saying this. Subsidy is the only thing masses are benefiting from government. Now since they removed it, tell me what masses are benefiting from government. They will tell u they sharing it to state government which we all know that governors will siph0n the money and enrich themselves. That's why u can see 32 governors queue at Mr president back.

nairalanda1:
Well bringing in a subsidy would do the opposite of what you want.

See the electricity sector. A subsidy has been maintained on the electricity sector for decades, the APC government won't remove it at all...and the result is a sector that can barely manage to produce up to a third of the electricity NIgeria needs.

A subsidy on fuel would end the ability of the sector to make a profit, and lead to its downfall. That is what happened with the NNPC refineres. They were prevented from making a profit in the name of subsidy, and as a result could not fund running, expansion and upgrade costs at all atall, and whatever money was made from periodic partial removals of subsidy was spent on government bonanza projects. Result, we lost domestic refining and ended up throwing away foreign exchange...importing fuel AND subsidizing it.

If you want a subsidy, either do as they do in saner climes and pay the tax for it, or forget about it. Nothing in this world runs witout it making enough money. People want to be paid.

I keep saying this. Subsidy is the only thing masses are benefiting from government. Now since they removed it, tell me what masses are benefiting from government. They will tell u they sharing it to state government which we all know that governors will siph0n the money and enrich themselves. That's why u can see 32 governors queue at Mr president back. Our government not sincere in anything they doing.

Have you read the latest report on nigeria's daily fuel consumption.......it states we consume about 50m liters of fuel daily both locally produced and imported........do the math on how much subsidy govt would have been paying daily with the current cost at 1,350.

How much will prices come down to,will atiku bring it back to the pre tinubu rates of 250 naira a liter,that means he will be paying nothing less than 1k per liter in subsidy,kindly multiply that by 50m liters daily.......any subsidy regime that will come to the consumer higher than 500 to 600 naira makes no sense and even at that,atiku will still have to be forking out 650 naira on every liter.......do the math,where atiku wan see that kind money pay?

Instead of direct pms subsidy,why not push for policy advocacy that govt should rather make efficient and cheap transportation available.........lagos state for instance should provide more CNG mass transit busses at subsidised rates,about half the cost the masses are currently spending on transport.......also food trucks from the north can be subsidised by providing subsidised diesel or free diesel for them with tracking devices attached to monitor their movements also the multiple state levies they pay should be abolished or reduced.

Govt should provide standard public schools that will be affordable,they can serve as alternatives to the expensive private schools all over the place,this will make households able to save money they would have spent sending their children to private schools.

Health care,child and maternal health should be made free and a health scheme that is efficient and affordable, health insurance should be more accessible and our PHCs be better improved to provide cheaper health care to the masses.

The challenge is many of this things we mentioned falls within the purview of the state govs who should be compelled by the citizens to do more,if you are get cheap subsidised transport to work, your kids are attending cheap public schools,your wife and child can get affordable health care and food arrives at the market cheaper...... the govt would have done a lot to ameliorate the suffering of the people amd will have a far better effect then the burdensome pms subsidy regime and can be effectively tracked and assessed.

NIGERIAJAGAJAGA:
I keep saying this. Subsidy is the only thing masses are benefiting from government. Now since they removed it, tell me what masses are benefiting from government. They will tell u they sharing it to state government which we all know that governors will siph0n the money and enrich themselves. That's why u can see 32 governors queue at Mr president back.

Subsidy also contributed to our massive debt, basically ended domestic refining in Nigeria, since it prevented refineries from making a decent profit to upgrade and run themselves well, and also forced us to import and to subsidise the import of the same fuel..causing us to go into debt, and also ironically forcing this government to borrow more than other governments combined because the debt left in part by decades of subsidy payments means ironically that we have to borrow more.

So, it hurt the masses eventually.

The only painful thing is that we waited too long to take the decision, and the government we have is partly responsible for the mess that led to its removal.

Still, hypocritical actions of APC aside, better late than never.

We were told to do so in 1992, and we ignored the warning. We now pay the price.

Lithiumite:
Have you read the latest report on nigeria's daily fuel consumption.......it states we consume about 50m liters of fuel daily both locally produced and imported........do the math on how much subsidy govt would have been paying daily with the current cost at 1,350.

How much will prices come down to,will atiku bring it back to the pre tinubu rates of 250 naira a liter,that means he will be paying nothing less than 1k per liter in subsidy,kindly multiply that by 50m liters daily.......any subsidy regime that will come to the consumer higher than 500 to 600 naira makes no sense and even at that,atiku will still have to be forking out 650 naira on every liter.......do the math,where atiku wan see that kind money pay?

Instead of direct pms subsidy,why not push for policy advocacy that govt should rather make efficient and cheap transportation available.........lagos state for instance should provide more CNG mass transit busses at subsidised rates,about half the cost the masses are currently spending on transport.......also food trucks from the north can be subsidised by providing subsidised diesel or free diesel for them with tracking devices attached to monitor their movements also the multiple state levies they pay should be abolished or reduced.

Govt should provide standard public schools that will be affordable,they can serve as alternatives to the expensive private schools all over the place,this will make households able to save money they would have spent sending their children to private schools.

Health care,child and maternal health should be made free and a health scheme that is efficient and affordable, health insurance should be more accessible and our PHCs be better improved to provide cheaper health care to the masses.

The challenge is many of this things we mentioned falls within the purview of the state govs who should be compelled by the citizens to do more,if you are get cheap subsidised transport to work, your kids are attending cheap public schools,your wife and child can get affordable health care and food arrives at the market cheaper...... the govt would have done a lot to ameliorate the suffering of the people amd will have a far better effect then the burdensome pms subsidy regime and can be effectively tracked and assessed.

We don’t consume 50M liters of petrol daily.

You guys think we’ve forgotten so soon when Tinubu administration told us that our daily fuel consumption had dropped to about 12M liters daily as far back as 2024.

Where did you get 50M daily again? Who are those buying these fuel?

Businesses that used to power generators with petrol have closed since fuel prices surged, people no longer fill up their car tanks and no one fills up his fuel tank daily. So where is this 50N petrol usage daily coming from?

You are standing with Atiku on K leg

nairalanda1:
Subsidy also contributed to our massive debt, basically ended domestic refining in Nigeria, since it prevented refineries from making a decent profit to upgrade and run themselves well, and also forced us to import and to subsidise the import of the same fuel..causing us to go into debt, and also ironically forcing this government to borrow more than other governments combined because the debt left in part by decades of subsidy payments means ironically that we have to borrow more.

So, it hurt the masses eventually.

The only painful thing is that we waited too long to take the decision, and the government we have is partly responsible for the mess that led to its removal.

Still, hypocritical actions of APC aside, better late than never.

We were told to do so in 1992, and we ignored the warning. We now pay the price.

I understand u bro. Now let go back to debt aspect. Before subsidy, how much Is Nigeria debt. After subsidy, how much is our debt. They just still continue to enrich themselves with these sc@m they called subsidy. They never come out plain. Let them be paying the subsidy. That's only thing masses gains from government.

1. NIGERIANS NEED URGENT RELIEF FROM THE HIGH COST OF LIVING

Relief does not happen instantaneously. It is a gradual process. With the trajectory we are now, relief is definitely guaranteed . Our great country cannot be subsidizing fuel at the expense of fiscal savings and development. With a population spiking towards 300 million, our nation cannot afford subsidizing the energy demands. It is not feasible for a nation that has development has a top priority.

CHEAPER FUEL COULD HELP REDUCE TRANSPORTATION AND FOOD COSTS


That’s uncontested but do we keep subsidizing energy with trillions just because of food and transportation?
We can always use proceeds from our savings to boost agriculture and alternate energy. Those are topics that should be on the table. Not spending our future away because of food and transportation.

The result of the investments we have made during the current administration of His Excellency, President Asiwaju Bola Ahmed Tinubu (GCFR) are definitely bound to yield immense, productive and reverberations across all sectors of the economy.

NIGERIA SHOULD SUPPORT LOCAL PRODUCTION, NOT ENRICH MIDDLEMEN

With infrastructural and processing demands of energy, I believe you quite familiar with the cost demands. When we spending trillions on subsidy, where does the government get the funds to support local production. On what priority list will it be after we already have trillions budgeted for subsidy.

Same you who is welcoming subsidy is the same person talking about eliminating middle men. Seems you forgot how subsidy worked over the last 3 decades. The middle men will always be the biggest winners as subsidy goes through them. We have learnt from that and moved on.

4. TRANSPARENCY AND ACCOUNTABILITY MUST REPLACE THE OLD SYSTEM

That is current phase we are at now. Making then every working part in the administration be accountable and transparent. The administration of His Excellency, President Asiwaju Bola Ahmed Tinubu (GCFR) has been transparent about his investment in state governments which ADMINISTRATIVELY, is the best channel to get relief and dividends citizens. Why state governors also need to be held accountable by their own people.

The old system and structure has been completely overhauled and we currently on a new chapter where every $ counts and needs to be accounted for. It doesn’t mean we still don’t have loopholes., but it is at the barest minimum.

5. THE WELFARE OF THE PEOPLE MUST BE THE PURPOSE OF ECONOMIC POLICY


That has always been the priority of previous and past administration and how they went about it got us into the current mess.

With the current administration of His Excellency, President Asiwaju Bola Ahmed Tinubu (GCFR), the welfare of the people, both living and unborn, is the top agenda of the administration.

We are on a part where we prioritizing the present and future. The drastic turns made by the administration was BOUND to deliver hardship, but only for a short term. The gains over generations outweighs the short term hardship.

In conclusion

In as much as I respect your opinion which you entitle to, I can assure and reassure you that, His Excellency, President Asiwaju Bola Ahmed Tinubu (GCFR) is steering Nigeria on course towards economical greatness and independence.

Our current predicaments are not permanent. Every country that made that U-turn experienced same. It’s not unique to us.

NIGERIAJAGAJAGA:
I understand u bro. Now let go back to debt aspect. Before subsidy, how much Is Nigeria debt. After subsidy, how much is our debt. They just still continue to enrich themselves with these sc@m they called subsidy. They never come out plain. Let them be paying the subsidy. That's only thing masses gains from government.

Our debt increased massively during the subsidy regime.

Infact, if not for the 2006 debt forgiveness that we got (which cost us a significant amount of our then forex reserves) we would have been in an even bigger debt today.

The increase in the debt, especially in the 2007-23 period, is why we are borrowing more today, and why subsidy went, in part to reduce the need of borrowing.

Bringing back the subsidy is going to worsen the debt even more.

Sheuns:
We don’t consume 50M liters of petrol daily.

You guys think we’ve forgotten so soon when Tinubu administration told us that our daily fuel consumption had dropped to about 12M liters daily as far back as 2024.

Where did you get 50M daily again? Who are those buying these fuel?

Businesses that used to power generators with petrol have closed since fuel prices surged, people no longer fill up their car tanks and no one fills up his fuel tank daily. So where is this 50N petrol usage daily coming from?

https://www.nairaland.com/8734940/petrol-imports-rise-july-domestic#140436122

We dont just argue baseless rhetoric like you guys usually do.......when tinubu came in and subsidy was freshly removed consumption dropped and you could even tell by the number of vehicular movements on our roads ,lagos roads used to be free but since mid 25 things have picked up astronomically lagos has grown back to the lagos of old even Sundays and public holidays arent left out.......except you want to keep loeing to ur self,the economy has picked up since the 2023 disruption of removal of subsidy and currency floatation.

Subsidy should be returned and paid to damgote

No nigerian should buy fuel above 400 naira Max

The only benefit for nigerian was subsidy


We can't be sharing fuel price with america when our minimum wage can't buy bread for months

kfasian:
5 STRONG REASONS WHY I SUPPORT ATIKU’S POSITION ON FUEL SUBSIDY

Opinion:

By PastorKay



PastorKay is a
Public Commentator and Social Activist

I disagree with you, in-that the most beneficiary of subsidy are the political elites

Lithiumite:
Have you read the latest report on nigeria's daily fuel consumption.......it states we consume about 50m liters of fuel daily both locally produced and imported........do the math on how much subsidy govt would have been paying daily with the current cost at 1,350.

How much will prices come down to,will atiku bring it back to the pre tinubu rates of 250 naira a liter,that means he will be paying nothing less than 1k per liter in subsidy,kindly multiply that by 50m liters daily.......any subsidy regime that will come to the consumer higher than 500 to 600 naira makes no sense and even at that,atiku will still have to be forking out 650 naira on every liter.......do the math,where atiku wan see that kind money pay?

Instead of direct pms subsidy,why not push for policy advocacy that govt should rather make efficient and cheap transportation available.........lagos state for instance should provide more CNG mass transit busses at subsidised rates,about half the cost the masses are currently spending on transport.......also food trucks from the north can be subsidised by providing subsidised diesel or free diesel for them with tracking devices attached to monitor their movements also the multiple state levies they pay should be abolished or reduced.

Govt should provide standard public schools that will be affordable,they can serve as alternatives to the expensive private schools all over the place,this will make households able to save money they would have spent sending their children to private schools.

Health care,child and maternal health should be made free and a health scheme that is efficient and affordable, health insurance should be more accessible and our PHCs be better improved to provide cheaper health care to the masses.

The challenge is many of this things we mentioned falls within the purview of the state govs who should be compelled by the citizens to do more,if you are get cheap subsidised transport to work, your kids are attending cheap public schools,your wife and child can get affordable health care and food arrives at the market cheaper...... the govt would have done a lot to ameliorate the suffering of the people amd will have a far better effect then the burdensome pms subsidy regime and can be effectively tracked and assessed.

Any arguement in support of subsidy return is always emotional than rational

As tough as my proposition maybe, to me....the solution to Nigeria's problem is reducing the population drastically. Many people need to go, esp like the author of this article. Lets say Lagos is reduced to N3m from over N30m, and its the highest population in Nigeria, I can imagine the number of useless people that would have gone.

Say amen somebody!

kfasian:
5 STRONG REASONS WHY I SUPPORT ATIKU’S POSITION ON FUEL SUBSIDY

Opinion:

By PastorKay



PastorKay is a
Public Commentator and Social Activist

All the past Government wey pay subsidy, why dem no do all this things?

Nigerians will decide in January

He is the that we'll welcome 😁

Bayo Onanuga is yet to respond with his basket mouth.
Tinubu should better subsidise Naira.

Official exchange rate
Baseline: ~N460/$
Current position: ~N1,358/$

What's our benefit as Nigerians

If this subsidy was done in stages, Nigerians won't have felt the effects too much.

Removing subsidy was the right call, but the manner in which it was done.

Doing the right thing at the wrong time.

If you want cheap fuel, learn how pyrolysis works. You can get free fuel without visiting a fueling station.

Subsidy is the top candidate for 2027. Any candidate who will restore subsidy will automatically kick the cocaine-smooking druqqie out of Aso Rock come next year.

Poor Nigerians cannot be forced to be paying for Petro the same price with the rich Americans , lower energy cost has to be one of the advantage of the Nigerian economy .. since it was recklessky removed production has cut by almost 50 percent .. people go to work only 3 times a week now because they cannot afford to show up at work daily again ,

The entire burden is on nigeria now. Governors and the elite are smilling to the bank. But the masses are not enjoying the dividend of the removal. Ples bring the subsidy back. Utilise it weml

My problem with tinubu is not about removal of subsidy on fuel, electricity, medical and other things, but the fact that this has not yielded any positive result for the past four years, rather than enriching few people with billions of naira everyday for his selfish interest

Lithiumite:
Have you read the latest report on nigeria's daily fuel consumption.......it states we consume about 50m liters of fuel daily both locally produced and imported........do the math on how much subsidy govt would have been paying daily with the current cost at 1,350.

How much will prices come down to,will atiku bring it back to the pre tinubu rates of 250 naira a liter,that means he will be paying nothing less than 1k per liter in subsidy,kindly multiply that by 50m liters daily.......any subsidy regime that will come to the consumer higher than 500 to 600 naira makes no sense and even at that,atiku will still have to be forking out 650 naira on every liter.......do the math,where atiku wan see that kind money pay?

Instead of direct pms subsidy,why not push for policy advocacy that govt should rather make efficient and cheap transportation available.........lagos state for instance should provide more CNG mass transit busses at subsidised rates,about half the cost the masses are currently spending on transport.......also food trucks from the north can be subsidised by providing subsidised diesel or free diesel for them with tracking devices attached to monitor their movements also the multiple state levies they pay should be abolished or reduced.

Govt should provide standard public schools that will be affordable,they can serve as alternatives to the expensive private schools all over the place,this will make households able to save money they would have spent sending their children to private schools.

Health care,child and maternal health should be made free and a health scheme that is efficient and affordable, health insurance should be more accessible and our PHCs be better improved to provide cheaper health care to the masses.

The challenge is many of this things we mentioned falls within the purview of the state govs who should be compelled by the citizens to do more,if you are get cheap subsidised transport to work, your kids are attending cheap public schools,your wife and child can get affordable health care and food arrives at the market cheaper...... the govt would have done a lot to ameliorate the suffering of the people amd will have a far better effect then the burdensome pms subsidy regime and can be effectively tracked and assessed.

They made a lot of noise about cng buses
Where are they now ??

emoneyrano:
Subsidy should be returned and paid to damgote

No nigerian should buy fuel above 400 naira Max

The only benefit for nigerian was subsidy


We can't be sharing fuel price with america when our minimum wage can't buy bread for months

Won;t work.

One thing in the refining of crude into various products is the production cost. It cannot be controlled by government or dangote, there are various factors, including the cost of crude oil that go into the production cost.

Production costs changes from time to time. And if the production costs rise, the cost of any potential subsidy can rise.

In 2011, goverment then budgeted X amount for subsidy. OIl prices rose so high that government bill for subsidy at the end of the year was three times what they spent in 2010, and far above what they had budgeted. That meant that the government then had to borrow excessively to finance the next year's budget, and do a partial removal of subsidy to try to keep borrowing low.

Selling fuel must make enough profit to cover any potential fluctuations in production cost. Trying to make government do it is like essentially asking for more debt, on top of the debt we have already.

SarkinYarki:
Poor Nigerians cannot be forced to be paying for Petro the same price with the rich Americans , ,

We are not paying for petrol at the same price as the Americans o. Not only are prices higher in the USA, some states like California add tax on top of the fuel price per liter, further raising the price.

kfasian:
5 STRONG REASONS WHY I SUPPORT ATIKU’S POSITION ON FUEL SUBSIDY

Opinion:

By PastorKay



PastorKay is a
Public Commentator and Social Activist

A FACT-BY-FACT REALITY CHECK ABOUT SUBSIDY

The post by pastor kay sounds compassionate, but economically it confuses the need to protect Nigerians with the need to restore a fuel subsidy that was demonstrably expensive, opaque and poorly targeted.

1. “Nigerians need relief, therefore restore subsidy.”

Yes, Nigerians need relief. But the relevant question is which form of relief gives the greatest benefit to the greatest number of Nigerians?

The World Bank found that Nigeria's petrol subsidy was costly, regressive and opaque, with better-off households capturing a disproportionate share of the benefit. Between 2019 and 2022 alone, the subsidy cost Nigeria more than ₦8.6 trillion.

So the argument cannot simply be

“People are suffering, therefore subsidise petrol.”

It must answer

Why should scarce public money be used to subsidise a product in a way that disproportionately benefits people who consume more fuel?

2. “Cheaper petrol will make food cheaper.”

This sounds logical, but it is not that simple.

Fuel is only one component of food prices. Farmers also face fertiliser costs, labour costs, insecurity, storage losses, electricity costs, exchange-rate pressures, financing costs and poor transportation infrastructure.

The World Bank itself acknowledged that subsidy removal contributed to inflationary pressure and significantly increased gasoline prices, but it simultaneously argued that the old subsidy was fiscally unsustainable and that Nigeria needed to redirect resources toward infrastructure, social protection and productive investment.

Therefore, cheaper petrol does not automatically equal cheaper food. Not in this economy not in any economy, sir.

If it did, Nigeria would have solved its food crisis years ago simply by keeping petrol artificially cheap.

3. “Nigeria is an oil-producing country, therefore Nigerians deserve cheap fuel.”

This is emotionally compelling but economically incomplete.

Nigeria produces crude oil; it does not mean every litre of petrol can be supplied to Nigerians below its economic cost without somebody paying the difference. This one, we always get wrong when we argue why are we paying much for what we produce.

If government sells petrol below cost, the subsidy must ultimately come from somewhere and yes it is taxes, oil revenue, borrowing, reduced public spending, or monetary financing.

And Nigeria already demonstrated the danger.

The World Bank reported that Nigeria's subsidy could exceed ₦5 trillion in 2022, while warning that the subsidy primarily benefited wealthier households and crowded out spending on health, education and social protection.

So the question is not “Does Nigeria have oil?”

The question is

“Is subsidising petrol the most efficient way to transfer Nigeria's oil wealth to the poorest Nigerians?”

The overwhelming evidence says a capital NO.

4. “The subsidy enriched middlemen, so create a better subsidy.”

This is actually the strongest part of the issue —but it undermines the argument for a broad subsidy rather than strengthening it.

If the problem was corruption, opacity and rent-seeking, why recreate the same enormous financial pipeline and simply promise that this time it will be transparent?

The better solution is targeted intervention

public transport support, targeted cash transfers, agricultural logistics, mass transit, cheaper energy for productive businesses and investment in domestic refining.

The World Bank explicitly recommended expanding social protection and targeted support to cushion vulnerable households rather than returning to the old subsidy structure.

5. “But subsidy removal has made Nigerians poorer.”

This criticism has genuine merit, no lies on that—but it does not prove that subsidy restoration is the answer. I don't believe because it lacks evidence.

The World Bank itself acknowledged that the reforms produced severe short-term pain. Petrol prices rose by an average of 163% following the initial reform, while inflation reached 33.7% in April 2024.

The same World Bank, however, concluded that Nigeria needed to stay the course on subsidy reform while strengthening social protection, cutting government waste and redirecting resources toward development.

In other words

The evidence supports cushioning Nigerians from the consequences of subsidy removal—not resurrecting the subsidy itself.



The Pastor Kay says Nigeria must not “enrich middlemen.”

Agreed.

But a broad fuel subsidy historically required enormous public expenditure to keep pump prices below market-linked costs.

So where is the evidence that a new subsidy mechanism will avoid the very leakage, opacity and distributional problems that made the previous system so controversial?

Who gets the subsidy?

How much does each litre receive?

Who verifies actual consumption?

How are fraudulent claims prevented?

Who audits the subsidy account?

What happens when international crude prices rise?

What happens when the naira depreciates?

What is the annual fiscal ceiling?

And most importantly

what expenditure will government sacrifice to finance it?

Those questions cannot be answered with “Nigerians are suffering.”

7. The uncomfortable numbers matter.

The World Bank estimated that Nigeria's petrol subsidy cost more than ₦8.6 trillion between 2019 and 2022 and described it as benefiting relatively better-off consumers while contributing to black-market activity and smuggling.

That money could have financed enormous amounts of infrastructure, healthcare, education and targeted poverty programmes.

This is why the argument must go beyond emotion.

Nobody should celebrate hardship.

Nobody should dismiss Nigerians who cannot afford transportation.

Nobody should pretend subsidy removal has been painless.

But badly designed relief is still bad economic policy simply because it feels compassionate.

Nigeria needs to protect poor Nigerians without recreating a fiscal black hole.

If Atiku's proposal is for a strictly temporary, transparent, capped and independently audited intervention, with measurable benefits going specifically to vulnerable households and productive sectors, then present the numbers.

Show the financing model.

Show the beneficiaries.

Show the anti-corruption mechanism.

Show the fiscal ceiling.

Show what happens when oil prices fall.

Show how the subsidy will not again become another trillion-naira rent-seeking machine.

My Take On This.

My Nigeria, My Nation

HopeGying:
Subsidy is the top candidate for 2027. Any candidate who will restore subsidy will automatically kick the cocaine-smooking druqqie out of Aso Rock come next year.

And then worsen the already bad debt, to boot...by paying for a subsidy.

Every developing and developed country on earth subsidized one thing or the other as a mitigation or relief effort for its citizens.

The so called subsidy removal proceeds they gathered, has it not been shared amongst the executives and legislature as we initially predicted? Yet the govt is still even borrowing more than all the previous administration.

China that the whole world is going to now, do you know how much their govt (CCP) pays as subsidies to it's manufacturing companies so that they can survive international price shocks.

President Tinubu tried to remove govt responsibility 4rm everything by telling us that they are broke. Hence, plunging many Nigerians into abject poverty while giving them hope. While the acquired proceeds are being stolen or shared or wasted amongst the elites.

Obasanjo that tried to save monies in Nigeria's cofers and appointed a puppet after him so as to ensure that those monies are secured. Did all those monies not disappear few years after he left office?

President Tinubu need to understand that either way, Nigeria will still borrow to survive. Hence, should have found ways to improve standard of living of Nigerians as utmost priority. Ensure quality of life first for your people.

Even Iran with several sanctions for many years and currently besieged with war has better standard of living, life expectancy and public infrastructure and purchasing power than Nigerians currently.

Argentina with multiple years of massive defaulted loans and economic pressures still have their people in better quality of life and purchasing power than Nigerians.

Take care of today. Nigerians should have no reasons to be searching for shelters and food helplessly in countries like Benin, Congo, Kenya, Cameroun etc.

Atiku is coming

Obi is gone

The major reason of removing fuel subsidy was because of fraud (subsidy fraud) by importers and cabal, now that we have Dangote refinary that could supply the whole nation, why not pay Dangote the subsidy which could be monitored. that would have solved the problem of removing fuel subsidy in the first place. Why is government not thinking towards this if truly subsidy fraud is what make them stop the subsidy.