Minister of Solid Minerals Development, Dele Alake, says President Bola Tinubu took a major political risk by removing Nigeria’s petrol subsidy, choosing what he described as the country’s long-term economic interests over short-term political considerations.
Mr Alake made the comments on Wednesday during an interactive session with members of the All Progressives Congress (APC) Press Corps in Abuja, where he discussed the government’s economic reforms.
The minister said successive administrations had recognised the need to reform the subsidy system but repeatedly postponed difficult decisions because of concerns over elections and their potential political consequences.
According to him, President Tinubu decided to proceed with the reform despite knowing that it would lead to immediate hardship and possible political backlash.
“Somebody came and decided to swallow the bitter pill, to take the bullets on behalf of Nigerians,” Mr Alake said.
He argued that there was no shortcut to genuine economic reform, adding that the distortions in Nigeria’s economy had been identified long before the Tinubu administration came into office.
Mr Alake said the major difference was the willingness of the current administration to take difficult decisions that previous governments had avoided.
‘Subsidy benefited cartels’
The minister also defended the decision to end the subsidy, arguing that the system had disproportionately benefited wealthy Nigerians and fuel cartels rather than ordinary citizens.
He alleged that subsidised petrol was sometimes purchased cheaply in Nigeria and smuggled across neighbouring borders for substantial profits.
“When fuel subsidy was removed, did you think that they would fold their arms and be looking? No! They will fight back,” he said.
Mr Alake further argued that the subsidy had placed significant pressure on government finances, leaving federal and state governments struggling to meet obligations, including the payment of workers’ salaries.
He said resources that could have been directed towards infrastructure and other productive areas of the economy were instead being consumed by the subsidy regime.
Reforms will take time, minister says
Acknowledging the hardship associated with the reforms, Mr Alake said major economic policies could not be expected to produce immediate results.
He said reforms required planning, mobilisation of resources, implementation and monitoring before their full impact could be felt.
The minister nevertheless maintained that the Tinubu administration’s reforms were beginning to produce the intended economic benefits and called for consistency in their implementation.
President Tinubu announced the removal of the petrol subsidy during his inauguration on 29 May 2023, a decision that triggered a sharp rise in fuel prices and contributed to increased transportation and living costs.
The subsidy debate has since remained one of the most contentious issues in Nigeria’s economic and political discourse, particularly as the country approaches the 2027 general elections.
Mr Alake, who has also been named the APC’s 2027 Presidential Campaign Director of Strategic Communications, said reversing difficult reforms for political convenience would amount to repeating the mistakes of previous administrations.
He maintained that Nigeria needs continuity and consistency in implementing policies aimed at restructuring the economy.
