President Bola Tinubu has defended his administration’s decision to remove the petrol subsidy, describing calls by an unnamed political opponent to restore the policy as evidence of a lack of understanding of governance and economic management.
Tinubu spoke on Thursday at the Presidential Villa, Abuja, while receiving Osun State Governor, Ademola Adeleke, who paid him a visit.
The President said reversing the subsidy removal would amount to ignoring the economic realities that confronted the country before his administration came into office.
“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,” he said.
Tinubu recalled the financial difficulties faced by several state governments before he assumed office in 2023, saying 27 states struggled to meet their salary obligations and relied heavily on federal support.
“Before I came here, 27 states were unable to pay salaries, not to even talk of pensioners, salaries of workers.
“In your state. I know a man who’s nicknamed Half Salary. They come to the federal, cap in hand, unable to do anything. The salary you pay feeds families,” the President said.
He argued that the financial resources available to governments must be directed towards areas that directly affect citizens, including infrastructure, education, healthcare and the welfare of workers.
According to him, states remain critical to the delivery of government services because of the concentration of the population at the state and local government levels.
“They were at the local governments. They are in the states. Where is the concentration of population? They are in the states.
“Take out the President. Regard every other person as common men, their families to feed,” Tinubu said.
He added that investments in roads, housing, schools, hospitals, healthcare services and the training of teachers and health workers were necessary responsibilities of government.
Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, triggering a sharp increase in fuel prices and subsequent increases in the cost of transportation, food and other essential goods.
The policy has remained one of the most contentious aspects of his administration, with opposition politicians and sections of the public repeatedly demanding its reversal.
The President, however, has consistently maintained that the decision was necessary to protect the economy from further deterioration.
In May, Tinubu said the removal of the subsidy had prevented the country from sliding into an imminent financial crisis and created the basis for economic recovery.
The Federal Government has also cited the savings generated by the policy as evidence of its financial impact.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said on Wednesday that the removal of the petrol subsidy generated ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
Oyedele explained that the amount was reflected in the resources available to the Federation but was not recorded through a specific Federation Account credit labelled “subsidy savings.”
“Between June 2023 and December 2025, subsidy savings mobilised the sum of N15.8 trillion in resources for the Federation,” he said.
He added: “Many people will say, where is the subsidy savings? As a matter of fact, there wasn’t any alert to the Federation Account with the description ‘subsidy savings’.”
