Special Adviser to the President on Economic Affairs and former presidential candidate, Dr. Tope Fasua, has defended President Bola Ahmed Tinubu’s decision to remove fuel subsidy, insisting that the policy remains critical to Nigeria’s long-term economic stability and development.
Speaking on the podcast, Conversations with Prof. Jideofor Adibe, Fasua urged Nigerians to remain patient with the ongoing economic reforms, arguing that the country is still in the early stages of its development journey.
He maintained that Nigeria, at 66 years of nationhood, is still negotiating its path towards sustainable economic growth and prosperity.
“Our public schools are free. There’s a subsidy in Nigeria’s agricultural sector; even the health sector. But for fuel subsidies, we say it has to go.
“So, we are saving this country fifteen billion every year by the removal of the fuel subsidy.” He added.
Responding to suggestions by the host, Prof. Jideofor Adibe, that the government should have retained a partial fuel subsidy while eliminating corruption in the sector to address the attendant cost of living that comes with the removal of fuel subsidy and improve citizens’ purchasing power, Fasua argued that many Nigerians had lived under the illusion that fuel should be almost free simply because of the availability of crude locally.
He acknowledged that the removal of fuel subsidy contributed to the rise in the cost of goods and services but maintained that market forces had significantly worsened the situation through excessive price hikes.
“When President Goodluck Jonathan moved to remove fuel subsidy, some of us protested because we only wanted to know the fraud going in the sector.”
“For instance, if fuel prices get increased by 20 per cent, you would see market forces increasing their prices to 50 per cent. And then panic sets in, and before you know, prices have gone up to 100 per cent.”
Fasua emphasised that the inflationary effects of the policy had been compounded by external factors, particularly global geopolitical tensions.
“Petrol prices would have come down to eight or seven hundred naira, so if not for the US/Iran war.”
He further described Nigeria as the second-largest informal economy in Africa, noting that the country’s greatest strength lies in domestic investment, which he said remains key to driving economic growth despite prevailing challenges.
