Fuel Subsidy Removal: Between Economic Reality and Political Convenience

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By Oreva Godwin

For Working People United (WoPU)

During the 2023 presidential debate, both major presidential aspirants stated their position that the fuel subsidy needed to be removed. Nigerians applauded and supported that position because many understood that the subsidy regime had become a burden on the nation's economy.

When President Bola Ahmed Tinubu assumed office, one of the first major decisions he took was the removal of the

fuel subsidy. It was a needed but painful move.

For years, fuel subsidies cost Nigeria trillions of naira, placing enormous pressure on government finances. Nigeria was burdened with debt and lacked the resources required to sustain the nation’s growing responsibilities. The removal of fuel subsidy became the only realistic option available to prevent further economic decline. All the presidential aspirants understood this reality, which was why they all stood on the position that subsidy had to be removed.

The reality is that fuel subsidy did not disproportionately benefit the poorest Nigerians. Instead, a large portion of the benefits went to fuel importers, smugglers, and wealthier Nigerians who consumed more fuel.

A video recently surfaced of ARISE News presenter Rufai Oseni becoming emotional as he reflected on a time when Nigeria was financially strong enough to contribute resources to international financial institutions. His emotion resonated with many Nigerians, but emotion alone should not replace logical analysis.

The Nigeria of the 1970s is not the Nigeria of today. Our population was significantly smaller, infrastructure demands were far less extensive, and the pressure on public finances was nowhere near what it is now. Today, over 200 million people depend on government spending for roads, healthcare, education, security, power, and other critical services.

It is therefore misleading to compare two completely different economic realities without acknowledging the enormous demographic and developmental changes that have taken place. While nostalgia is understandable, sound economic policy must respond to present realities rather than memories of a different era.

This is why difficult reforms, including fuel subsidy removal, must be assessed based on today's fiscal realities and their long-term impact on Nigeria's economic sustainability, not solely through the lens of the past.

Yes, it is a difficult time, but Nigeria will prevail. President Bola Ahmed Tinubu is an audacious leader who has taken decisions many leaders avoided because of the fear of political consequences.

In my studies of international relations, I have come to understand that global politics is largely driven by interests, influence, and power. Developed countries and world powers often act based on what advances their own strategic interests. They do not always approach international relations from the standpoint of charity; they pursue dominance and influence.

When powerful nations oppose the decisions of developing countries, it is important to examine whether those nations are genuinely acting in the interest of the people or protecting their own strategic advantages. A nation that refuses to remain a pawn and chooses to make independent decisions may often face resistance from powerful global actors.

What we are witnessing in Nigeria’s relationship with some global powers, including the United States, is a reminder that international relations is driven by interests. The disagreements, criticisms, and pressures surrounding Nigeria’s policies must be viewed through the lens of diplomacy, influence, and national interest. Every powerful nation protects its own objectives, and Nigeria must also learn to protect hers.

A nation cannot build a strong future if it constantly seeks approval from external powers. True independence is not only about political freedom; it is also about the courage to make economic decisions that serve national interests.

Nigeria must not remain a pawn. We must build. We must reform. We must rise.

The journey may be painful, but reforms that confront long-standing challenges are necessary if Nigeria must rebuild.

As we approach 2027, Nigerians must choose leadership based on courage, vision, and commitment to national transformation.

Let us vote wisely. Let us vote President Bola Ahmed Tinubu come 2027.