Independence Day: No Going Back on Fuel Subsidy Removal – FG

The Federal Government has ruled out any return to the fuel subsidy regime, saying the removal of the policy remains a key part of its economic reforms.

Secretary to the Government of the Federation, George Akume, stated this at the 66th Independence Day lecture in Abuja, where he defended the economic measures introduced by the administration of President Bola Ahmed Tinubu.

Akume said the government had taken difficult decisions, including the removal of petrol subsidy, foreign exchange reforms and changes to the fiscal system, to address longstanding weaknesses in the Nigerian economy.

He said the government would not return to what he described as the “ruinous petroleum subsidy regime of the past”.

The SGF argued that the reforms were beginning to produce measurable results, citing economic growth recorded in 2026.

He said Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period of the previous year, while other indicators were also showing improvement.

Akume, however, acknowledged that economic growth must translate into better living conditions, higher incomes and more employment opportunities for Nigerians.

The government has increasingly promoted Compressed Natural Gas (CNG) as an alternative to petrol following the removal of subsidy.

Akume said more than 120,000 vehicles had been converted to CNG, with more than 400 conversion centres and about 90 CNG fuelling stations established across the country.

He said the expansion of CNG was helping to reduce transportation costs and provide Nigerians with cheaper alternatives to petrol-powered transport.

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The government also highlighted investments in infrastructure, agriculture, electricity, healthcare and education as part of its strategy to cushion the effects of economic reforms and strengthen long-term growth.

Akume cited projects including the Lagos-Calabar Coastal Highway, Abuja-Kano Highway and East-West Road, alongside railway and port development.

On agriculture, he disclosed that the World Bank had approved a $500 million credit facility for the Nigeria Sustainable Agricultural Value-Chains for Growth project.

The initiative is expected to support smallholder farmers, strengthen agricultural value chains and improve food and nutrition security.

Minister of Information and National Orientation, Mohammed Idris, also defended the government’s economic direction at the lecture, saying the economy recorded 4.43 per cent growth in the second quarter of 2026.

Idris acknowledged the difficulties caused by the reforms but said the government was working to address structural problems that had affected the economy for years.

The debate over petrol subsidy removal has remained a major political and economic issue ahead of the 2027 general election.

Opposition politicians have proposed different approaches to the subsidy policy. Former Vice President and African Democratic Congress (ADC) presidential candidate Atiku Abubakar has advocated a form of subsidy intervention, while Nigeria Democratic Congress (NDC) presidential candidate Peter Obi has also spoken about restoring subsidy under certain conditions.

The Tinubu administration, however, has maintained that the subsidy regime will not be restored.

President Tinubu, in his October 1 Independence Day address, defended the reforms and said the government’s priority was to reduce the cost of living by lowering production and transportation costs and expanding investment in agriculture, infrastructure and other productive sectors.

The Federal Government’s latest position therefore reinforces its commitment to keeping the petrol subsidy removal in place while pursuing alternatives such as CNG, domestic refining, increased energy production and broader economic reforms.

Independence Day: No Going Back on Fuel Subsidy Removal – FG