The Presidency has explained why President Bola Tinubu has refused to restore fuel subsidy, saying the previous subsidy regime largely benefited fraudulent operators rather than ordinary Nigerians.
Speaking during an interview on Channels Television’s Politics Today on Thursday, the Special Adviser to the President on Policy Communications, Daniel Bwala, said the administration believes the fuel subsidy system was heavily abused by vested interests in the petroleum sector.
“The reason President Tinubu has refused to return the subsidy on fuel is that historically the beneficiaries of this subsidy are not the Nigerian people. It is fraud people in that industry,” Bwala said.
He noted that the government was not entirely opposed to subsidies but preferred targeted interventions that directly impact citizens.
READ ALSO: Tinubu’s Fuel Subsidy Removal Saved $10bn in 2023 — Dep. Speaker Kalu
“The concept of subsidy itself is not anathema to this government. That’s why you see that we have subsidized on dialysis 50 per cent. We have subsidized in areas of agricultural element, things that affect our people,” he added.
Bwala also argued that the removal of fuel subsidy has significantly increased revenues accruing to states, saying governors across the country were benefiting from improved allocations.
“All the governors of Nigeria are happy because of increased revenues,” he stated.
The presidential aide further described Tinubu’s leadership style as flexible rather than rigid, suggesting the administration could reconsider certain economic measures if circumstances demand it.
“President Bola Tinubu’s style of leadership is not rigid. It’s flexible. That’s why, even with borrowing, he said it is not leprosy. If there is a demand for subsidy, President Tinubu will do that for now,” Bwala said.
The remarks come amid ongoing public debate over the impact of fuel subsidy removal, which has contributed to rising transportation costs, inflation, and increased cost of living since the policy was implemented shortly after Tinubu assumed office in 2023.