In his inaugural speech as president on Monday, President Bola Tinubu made a significant announcement, stating that the era of petrol subsidies in Nigeria has come to an end. Highlighting the absence of any provisions for fuel subsidy in the budget prior to his assumption of office, President Tinubu emphasized the removal of this long-debated subsidy.
“On fuel subsidy, unfortunately, the budget before I assumed office is that no provision is there for fuel subsidy. So fuel subsidy is gone,” he said.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favored the rich more than the poor,” President Tinubu stated.
He further justified this move by asserting that the continually rising costs of subsidies can no longer be justified given the limited resources available.
Redirecting the funds previously allocated to fuel subsidies, President Tinubu expressed his intentions to invest in critical sectors that will enhance the lives of millions of Nigerians. He highlighted the importance of channeling these resources towards public infrastructure, education, healthcare, and job creation.
The issue of petrol subsidies has long been a subject of contention in Nigeria. Previous attempts to eliminate the subsidy sparked widespread protests and labor strikes. The Nigeria Labour Congress (NLC) vehemently opposed the removal of the subsidy, citing concerns over skyrocketing inflation and the existing hardships faced by Nigerians.
The NLC emphasized the need for addressing the nation’s dilapidated refineries and combating corruption within the petroleum sector before terminating the petrol subsidy regime.
These developments mark a significant shift in Nigeria’s energy policies, with President Tinubu’s administration prioritizing redirecting funds towards critical sectors, ultimately aiming to improve the lives of citizens across the nation.