We Won’t Return Fuel Subsidy, FG Declares At Independence Lecture

The Federal Government has ruled out any return to the petrol subsidy regime, insisting that the economic reforms introduced by President Bola Tinubu’s administration are beginning to produce results.

Secretary to the Government of the Federation, George Akume, made the declaration on Wednesday at the 66th Independence Anniversary Lecture held at the State House in Abuja.

The lecture, themed “From Reforms to Stability: Consolidating Nigeria’s Renewed Hope for Shared Prosperity,” focused on the government’s economic reforms and their impact on the country.

Akume said the administration took difficult decisions after assuming office in 2023, including the removal of fuel subsidy, unification of the foreign exchange market and implementation of tax and fiscal reforms.

He described the measures as necessary steps to address what he said were serious economic challenges facing the country.

According to the SGF, the government has begun to see results from the reforms, citing economic growth and increased investment in infrastructure and alternative energy.

Akume said the government would not reverse the removal of the fuel subsidy, but would instead accelerate the transition to cleaner and cheaper energy sources.

He highlighted the expansion of Compressed Natural Gas as part of the government’s strategy to reduce dependence on petrol and ease transportation costs.

The SGF disclosed that more than 120,000 vehicles had been converted to CNG, with more than 400 conversion centres and about 90 CNG fuelling stations established across the country.

He also said CNG buses were already transporting millions of passengers at fares below those charged by petrol-powered buses.

The government has repeatedly defended the removal of petrol subsidy, arguing that the previous system placed a heavy burden on public finances and limited resources available for infrastructure and social programmes.

President Bola Tinubu has similarly ruled out a return to the subsidy regime, saying Nigeria should instead expand the use of its abundant gas resources and other cheaper energy alternatives.

The position comes amid political debate over the subsidy, with some opposition figures calling for a reversal of the policy if elected in 2027.

The Federal Government has maintained that returning to the old subsidy system would undermine the economic reforms already implemented and create additional pressure on public finances.

Akume said the focus of the administration would now be on ensuring that economic growth translates into jobs, higher incomes and improved living standards for Nigerians.

He urged citizens to remain patient with the reform process while the government continues efforts to consolidate economic stability.