Subsidy Removal Has Repositioned Nigeria’s Economy – Oyintiloye

By Ayobami Agboola, Osogbo

A chieftain of the All Progressives Congress (APC) in Osun State, Hon. Olatunbosun Oyintiloye, has described the removal of fuel subsidy by President Bola Tinubu’s administration as a bold economic reform capable of repositioning Nigeria for sustainable growth and recovery.

Oyintiloye, a former lawmaker, also cautioned politicians seeking elective positions in the 2027 general elections against deliberately distorting facts about the subsidy removal for political gains.

He made the remarks while speaking with journalists in Osogbo on Sunday, saying the subsidy regime had imposed a huge financial burden on the country and become increasingly difficult to sustain.

According to him, Nigerians are gradually beginning to appreciate the necessity of the policy following the Federal Government’s decision to end the subsidy regime.

Oyintiloye said government figures indicated that petrol subsidy expenditure reached about N4.39 trillion in 2022, stressing that such funds could have been channelled into critical sectors, including infrastructure, education, healthcare, transportation and agriculture.

He said the reform became necessary because the country could no longer afford to spend trillions of naira subsidising petrol consumption while simultaneously battling fiscal pressures and huge development deficits.

The APC chieftain urged Nigerians to look beyond the immediate increase in petrol prices and understand the policy 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.

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

Oyintiloye said the removal of subsidy had helped reduce the government’s fiscal burden, improve budgetary discipline and create room for greater investment in critical areas of the economy.

He added that the reform had also strengthened the incentive for investment in domestic refining and the downstream petroleum sector.

He cited the 650,000-barrel-per-day Dangote Refinery as a major development in Nigeria’s efforts to expand local refining capacity and reduce dependence on imported refined petroleum products.

The APC chieftain, however, acknowledged the significant short-term hardship caused by the policy, particularly the increase in transportation and living costs faced by Nigerians.

“We acknowledge the hardship Nigerians are experiencing, but returning to the old system without addressing its fundamental problems would only postpone the crisis.

“The answer is to ensure that the resources freed from subsidy are converted into tangible benefits for the people, and the Tinubu administration has been doing that,” he said.

Oyintiloye urged the Federal Government to sustain investments in infrastructure, mass transportation, healthcare, education, agriculture, social protection and employment-generating programmes.

He stressed that the ultimate justification for the subsidy removal would be determined by its impact on Nigeria’s productive capacity and the welfare of its citizens.

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