President defends subsidy removal as Oyedele says policy generated ₦15.8tn for the Federation.
President Bola Tinubu has rejected calls to reverse his administration’s removal of the petrol subsidy, describing the position of an unnamed political opponent as a “demonstration of serious ignorance on governance and the economy.”
President Tinubu spoke on Thursday while receiving Osun State Governor, Ademola Adeleke, at the Presidential Villa in Abuja.
The President said the subsidy removal had helped strengthen the finances of state governments, noting that 27 states were unable to meet their salary obligations before he assumed office in 2023.
President Tinubu argued that state governments were critical to the welfare of Nigerians because they were responsible for providing services to communities where much of the population resides.
The President had previously said the removal of the subsidy averted an imminent national bankruptcy and created a foundation for economic recovery.
His comments came a day after the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that subsidy removal generated ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
Oyedele explained that the amount did not appear as a separate credit to the Federation Account labelled “subsidy savings” but was reflected in the resources available to the three tiers of government.
The disclosure followed renewed calls by opposition figures, including ADC presidential candidate Atiku Abubakar, for the restoration of the petrol subsidy ahead of the 2027 presidential election.
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