President Bola Tinubu has reiterated his stance on the removal of the petrol subsidy in May 2023, stating he has no regrets and emphasising that Nigeria could no longer afford to act as “Father Christmas” to neighbouring countries.
“I don’t have any regrets whatsoever about removing the petrol subsidy. We were spending our future; we were just deceiving ourselves. That reform was necessary,” Tinubu stated during a chat with reporters on Monday at his Bourdillon residence in Ikoyi, Lagos.
The President noted that the subsidy removal has fostered competition within the petroleum sector, leading to a gradual reduction in pump prices. “The market is being saturated. No monopoly, no oligopoly—just a free market economy at work,” he said.
Tinubu also dismissed the notion of implementing price controls, underscoring his commitment to market-driven solutions. “I don’t believe in price control. We will work hard to supply the market,” he affirmed.
Nigeria, Africa’s most populous country, remains heavily reliant on imported refined petroleum due to the non-operational state of its government-owned refineries. This dependence has led to soaring petrol prices since the subsidy removal, with costs rising from around ₦200 per litre to over ₦1,000 per litre. The move has intensified hardship for citizens who rely on petrol to power their vehicles and generators, given the country’s persistent electricity supply issues.
Simultaneously, the government’s unification of foreign exchange windows caused the naira to plummet in value, from ₦700/$1 to over ₦1,600/$1 in the parallel market. This sharp decline spurred a rise in food and basic commodity prices, compounding the economic challenges faced by Nigerians.
Despite widespread criticism, Tinubu remains resolute, describing the subsidy removal as a necessary step to stabilise the economy and promote long-term growth.