President Bola Tinubu has reiterated that the now-abolished fuel subsidy regime was fiscally irresponsible and largely favoured affluent Nigerians, making it both unsustainable and unjust.
Delivering his message at the National Conference on Public Accounts and Fiscal Governance on Monday, Tinubu, represented by the Minister of State for Finance, Dr. Doris Nkiruka Uzoka-Anite, said the decision to end fuel subsidies was critical to freeing up resources for infrastructure, social welfare, and economic reforms aimed at inclusive national development.
He explained that the subsidy, which cost Nigeria over N4 trillion in 2022 alone, consumed more funds than capital projects and disproportionately benefited the wealthy while encouraging smuggling and inefficiencies in the system.
“The removal was a painful but necessary step to create fiscal space and redirect public funds to sectors that benefit the broader population,” he said. “Subsidies, as they were, encouraged distortions in the economy and made room for corruption.”
President Tinubu warned that without transparent and accountable fiscal governance, Nigeria’s natural wealth would not translate to prosperity. He lamented that the country had long been held back by structural inefficiencies, fiscal leakages, and overreliance on oil revenues.
He highlighted ongoing reforms, including new tax laws designed to simplify compliance, expand the tax net, harmonise multiple taxes, and digitise collections — all geared towards improving the business climate and revenue generation.
On monetary policy, Tinubu acknowledged the Central Bank’s current efforts to stabilise the naira and curb inflation, noting the importance of synergy between monetary and fiscal authorities.
Senate President Godswill Akpabio, represented by Senator Abdul Ningi, called on the Public Accounts Committees (PACs) to assert their constitutional oversight role and ensure strict enforcement of financial accountability. He warned against the increasing trend of public officials ignoring legislative summons.
“Effective fiscal oversight is indispensable to national development. The PACs must not allow impunity to fester,” he said.
In a similar vein, Speaker of the House of Representatives, Abbas Tajudeen, represented by House Leader Julius Ihonvbere, raised concerns about continued disregard for audit findings, disclosing that over N300 billion in flagged public funds had yet to be recovered.
“It is unacceptable that audit queries are routinely ignored with no consequences. Fiscal responsibility must be enforced,” he said.
Chairman of the Senate Public Accounts Committee, Senator Ahmed Wadada, also spoke at the event, calling for a new era of responsible governance and fiscal discipline. He said the time had come to end the culture of recklessness in public finance management.
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