President Bola Ahmed Tinubu has disclosed that Nigeria used to spend as much as ₦18.4 billion daily on petrol subsidies before his administration removed the subsidy regime, Zilla Naija reports.
The President made the revelation on Friday, during his nationwide address marking the third anniversary of his administration.
Tinubu explained that under the old system, the federal government subsidised Premium Motor Spirit (petrol) to keep prices artificially low. At its peak, this subsidy reportedly cost over ₦4 trillion in 2022 alone, money he said could have been invested in roads, healthcare, schools, housing and other critical infrastructure.
According to the President, the subsidy was a drain on public resources and favoured arbitrage and speculation more than it helped ordinary Nigerians.
“At the height of the subsidy regime, Nigeria was spending as much as ₦18.4 billion daily to sustain petrol subsidies,” Tinubu stated.
Tinubu argued that leadership requires courage, saying that although removing the subsidy brought hardship — especially with higher fuel prices and rising cost of living — the move was necessary to stabilise Nigeria’s finances and prevent the country from drifting toward fiscal breakdown.
The President also faulted the old multiple exchange rate system for facilitating foreign exchange distortions and economic leakages. He estimated that Nigeria lost more than ₦8 trillion due to the outdated forex regime.
The fuel subsidy removal has remained a major point of contention nationwide. While Tinubu says it was essential for economic reform, many Nigerians continue to feel the impact of high petrol costs on household budgets and transportation expenses — concerns that have fuelled debates about cost of living and economic policy.
Some analysts believe that subsidy savings could free up billions of naira for infrastructure, education, healthcare and other priority sectors if effectively managed. Others argue that the government needs a clear plan to cushion citizens from the subsidy removal’s long‑term effects.
