By Chidinma Chukwu
ABUJA — The Federal Government has assured Nigerians that resources freed up by the removal of fuel subsidy are being redirected to infrastructure, economic renewal and improved public welfare.
The Minister of Information and National Orientation, Mohammed Idris, gave the assurance on Wednesday in Abuja at a joint press conference with the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Minister of Budget and Economic Planning, Atiku Bagudu.
The briefing, titled “Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented,” was convened to explain the financial implications of fuel subsidy removal and how the resources released by the reform were being deployed.
Idris described the subsidy removal as one of the most significant and difficult economic reforms undertaken by the President Bola Tinubu administration.
He acknowledged the sacrifices and adjustments the policy had imposed on individuals, families, businesses and communities, but said the government had consistently maintained that resources previously committed to subsidising fuel consumption would be redirected towards investments capable of delivering greater and more sustainable value to Nigerians.
“Citizens have a right to know what resources have been freed up, what these resources mean for the Federation, and how the benefits of reform are being translated into tangible improvements in their lives,” he said.
According to him, the briefing was part of the administration’s efforts to strengthen transparency and accountability around the subsidy reform and provide Nigerians with information on the resources generated since its implementation.
Idris said the discussion on subsidy removal should not end with the policy decision, stressing that Nigerians deserved to know what the reform had achieved and how the resulting resources were supporting broader government objectives.
“The conversation around subsidy removal cannot end with the policy decision itself. Nigerians deserve to know what the reform has achieved, the resources that have accrued from it, and how these resources are supporting the broader objectives of economic renewal, infrastructure development and improved public welfare,” he said.
The minister said the administration would continue to engage Nigerians on its economic policies, adding that government had a responsibility not only to announce policies but also to explain them, acknowledge the challenges associated with them and account for their outcomes.
Reforms designed to stop economic leakages — Bagudu
On his part, Bagudu said the economic reforms introduced by the Tinubu administration were designed to halt financial leakages, strengthen government revenue and restore confidence in the Nigerian economy.
He said the reforms became necessary because of Nigeria’s historically low revenue and expenditure levels, which had constrained the government’s capacity to finance development.
According to him, Nigeria has one of the lowest revenue-to-GDP ratios globally, limiting the resources available to government for development.
Bagudu also noted that Nigeria had the smallest GDP and federal budget among the 10 most populous countries in the world, despite having a population comparable to that of Brazil.
He said Tinubu, having campaigned on the Renewed Hope Agenda, recognised the need to confront the country’s economic challenges through bold and carefully sequenced reforms rather than engaging in a blame game.
The minister explained that the administration’s immediate priority was to “stop the bleeding” caused by policies that were putting pressure on public finances and undermining confidence in the economy.
He identified fuel subsidy removal as one of the difficult but necessary decisions taken to address the country’s fiscal challenges.
Bagudu said the reforms were also aimed at restoring the confidence of investors and Nigerians with capital, noting that previous policies had discouraged investment in the country.
FG inherited $6bn petroleum import obligations
The minister further disclosed that the administration inherited more than $6 billion in unpaid petroleum import obligations at a time when the country lacked sufficient foreign exchange to meet the commitments.
He said the development underscored the severity of the economic challenges inherited by the Tinubu administration and the need for fundamental reforms.
According to him, the government’s strategy was to make difficult choices, sequence reforms appropriately and prioritise measures capable of stabilising the economy while creating room for sustainable growth.
Bagudu expressed optimism that the reforms would strengthen Nigeria’s fiscal position, attract increased investment and create improved economic opportunities for citizens.
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