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Subsidy Removal Debate Is Over, Nigerians Must Now See Its Benefits — PENGASSAN

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Fuel Station and Attendant
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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to move beyond the debate over fuel subsidy removal and focus on ensuring that Nigerians begin to feel the benefits of the policy.

PENGASSAN President, Bosun Olabiyi-Agoro, made the call while speaking on Channels Television’s The Morning Brief on Friday.

According to him, the argument over whether fuel subsidy should have been removed or retained is now belated because the policy has already been implemented.

“I think the argument over whether to remove the subsidy or not to remove it is belated now. We have done it, but we need to start seeing the benefits of fuel subsidy removal in the lives of common Nigerians,” he said.

President Bola Tinubu announced the removal of the petrol subsidy shortly after assuming office in May 2023. Since then, the price of petrol has risen significantly, moving from about ₦200 per litre to around ₦1,300 per litre.

The policy has remained one of the most controversial economic decisions of the Tinubu administration, with critics and opposition figures blaming the removal of subsidy for part of the hardship and rising cost of living experienced by Nigerians.

Some opposition politicians have also promised to reverse the policy if elected, while the Federal Government has maintained that there is no going back on subsidy removal.

PENGASSAN Admits Policy Has Been Painful

Olabiyi-Agoro acknowledged that the removal of subsidy has been difficult for Nigerians and workers, describing the policy as painful.

He said the immediate consequences of the decision placed significant pressure on households and workers, many of whom are still struggling with the high cost of living more than three years after the policy was introduced.

However, he argued that the country should now concentrate on ensuring that the economic gains associated with the policy translate into tangible improvements in people’s lives.

Economic Growth Must Benefit Nigerians

The PENGASSAN president also reacted to Nigeria’s reported 4.43 per cent Gross Domestic Product (GDP) growth in the second quarter of 2026, saying that positive macroeconomic figures are welcome but should ultimately improve the living conditions of ordinary citizens.

He noted that indicators such as GDP growth, improved balance of trade and stronger foreign exchange reserves are positive developments for the economy.

However, he stressed that Nigerians need to see these improvements reflected in areas such as food prices, employment, wages and general living conditions.

According to him, economic growth should not remain confined to government statistics while ordinary Nigerians continue to struggle.

He said workers are prepared to contribute their own efforts to the country’s economic development and support whichever government is in power, but they also expect the benefits of economic reforms to reach the people.

Fuel Supply Has Improved

Olabiyi-Agoro also linked the improvement in the availability of petroleum products to the removal of the subsidy.

He explained that since government stopped making budgetary provisions for fuel subsidy, petroleum products are now being sold closer to their actual market prices without government bearing the cost of subsidising them.

He therefore argued that the country has moved beyond the question of whether subsidy should be removed.

For PENGASSAN, the priority now should be ensuring that the economic benefits of the policy are translated into better living conditions for Nigerians.

The association’s position reflects a growing call for the Federal Government to demonstrate that the sacrifices Nigerians have made since the removal of subsidy will ultimately produce measurable improvements in their standard of living.

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Business & Economy

Tinubu To Present 2027 Budget Before Year-End As FEC Approves Five-Year Development Plan

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President Bola Ahmed Tinubu
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President Bola Tinubu is expected to present the 2027 Appropriation Bill to the National Assembly before the end of 2026, as the Federal Executive Council (FEC) approved the National Development Plan 2026–2030 and new policy measures aimed at strengthening food security and tackling child stunting.

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, disclosed this on Wednesday while briefing State House correspondents on the outcomes of the FEC meeting chaired by President Tinubu at the Presidential Villa, Abuja.

Uzoka-Anite also announced the council’s approval of the Revised National Policy on Food and Nutrition 2026, which seeks to establish sustainable financing mechanisms and strengthen collaboration among ministries responsible for agriculture, livestock, health and education, as well as development partners.

The announcements followed the conclusion of the 32nd Nigerian Economic Summit, held in Abuja from October 26 to 28, which focused on key issues affecting the country’s economic development.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has clarified that the $21.7 billion borrowing proposal transmitted by President Tinubu to the National Assembly is intended to finance investments in productive assets and infrastructure rather than recurrent expenditure.

Oyedele explained that the proposal represents a multi-year investment programme spanning approximately five years, rather than an immediate drawdown of the entire amount.

According to him, $10.6 billion is earmarked for critical transportation infrastructure, including the Sokoto–Badagry Highway, Lagos–Calabar Coastal Highway and Kano–Kaduna Metro Rail.

He further disclosed that more than $7.9 billion would be sourced from multilateral and bilateral development partners, including $5 billion from the World Bank, at an average interest rate of approximately 2.1 per cent.

The proposed financing package also includes $3.3 billion for state government projects and $1.45 billion for projects in the Federal Capital Territory.

The planned 2027 budget presentation and the approval of the five-year development plan underscore the Federal Government’s efforts to align fiscal planning, infrastructure investment and social development priorities with its broader economic agenda.

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Tinubu Rules Out Fuel Subsidy Return, Says Nigeria Cannot Go Back to ‘Egypt’

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President Bola Ahmed Tinubu
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President Bola Tinubu has ruled out any return to petrol subsidy, insisting that the removal of the policy was necessary to prevent Nigeria’s economy from sliding into bankruptcy.

The President reiterated his position on Monday during a meeting with members of the City Boy Movement, a youth-driven political and advocacy group, where he defended the economic reforms introduced by his administration.

Tinubu said the government could no longer sustain the financial burden of subsidising petrol, arguing that the country lacked the resources required to continue funding the scheme.

“I came, and I removed the subsidy on my first day. Nigeria would have gone bankrupt; there was nothing left to pay for subsidies,” he said.

Using a biblical and Quranic analogy to underscore his position, the President declared that reversing the policy would amount to returning to an unsustainable economic system.

“When Moses (Musa) left Egypt, the Red Sea parted and gave way. You cannot ask Moses to go back to Egypt. With your energy and support, we will never go back to Egypt,” he stated.

The removal of petrol subsidy, announced during Tinubu’s inauguration on May 29, 2023, marked a major shift in Nigeria’s fiscal policy. The decision significantly increased petrol prices and contributed to mounting pressure on household incomes, transportation costs and businesses.

Petrol prices, which were below ₦200 per litre before the policy change, have since risen substantially, with prices reported at between ₦1,350 and ₦1,405 per litre across major filling stations.

The resulting increase in energy and transportation costs has continued to fuel public concerns over inflation, declining purchasing power and the overall cost of living.

However, the Federal Government has maintained that subsidy removal is critical to reducing fiscal pressure, improving public revenue and creating room for investment in infrastructure and other priority sectors.

Tinubu acknowledged the political contest surrounding the policy, noting that his opponents had promised to restore fuel subsidy. He nevertheless maintained that his administration would not reverse the reform.

Beyond defending the policy, the President urged members of the City Boy Movement to mobilise support for his administration by communicating its achievements and future plans to young Nigerians across campuses, markets and rural communities.

He also encouraged eligible young people to obtain their Permanent Voter Cards (PVCs) and participate in the electoral process.

The debate over fuel subsidy remains a central issue in Nigeria’s economic policy, with the government defending the reform on fiscal sustainability grounds while households and businesses continue to grapple with the effects of higher fuel prices.

 

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FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

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The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

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