The Presidency has defended the Federal Government’s decision to remove petrol subsidy, insisting that the policy’s most significant and visible achievement is the substantial increase in allocations to states and local government areas through the Federation Account Allocation Committee (FAAC).
In a statement issued on Sunday, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, said the removal of the long-standing subsidy has strengthened public finances by boosting revenue available for distribution across the three tiers of government.
Onanuga’s remarks came in response to recent criticism by former Vice-President Atiku Abubakar, who questioned the effectiveness of the subsidy removal policy and its impact on the lives of ordinary Nigerians.
According to the Presidency, the policy has provided state governments and local councils with significantly higher monthly allocations, enabling them to undertake developmental projects, improve infrastructure, and meet key financial obligations that were previously constrained by limited resources.
The Presidency maintained that while the reform has presented short-term economic challenges, it remains a necessary step towards restoring fiscal stability, eliminating unsustainable subsidy payments, and redirecting public funds to critical sectors of the economy.
The statement further argued that the increased FAAC disbursements stand as clear evidence that the subsidy removal is delivering tangible fiscal benefits, despite ongoing public concerns over the rising cost of living.
The exchange adds to the growing political debate over one of the Tinubu administration’s most consequential economic reforms, with both supporters and critics continuing to disagree over whether the long-term gains outweigh the immediate hardship experienced by millions of Nigerians.
