PRESIDENT Bola Tinubu expressed that he has no regrets about the removal of the petrol subsidy in May 2023, asserting that Nigeria cannot continue to support neighboring countries like “Father Christmas.”
“I have no regrets whatsoever about eliminating the petrol subsidy. We were deceiving ourselves, and reform was necessary for our future,” the former Lagos governor stated during a discussion with reporters at his Bourdillon residence in Ikoyi yesterday.
Tinubu noted that the removal of the petrol subsidy approximately 18 months ago stimulated competition in the sector, leading to a gradual decrease in petrol prices.
“The market is becoming saturated. There’s no monopoly or oligopoly; we have a free market economy operating,” he explained.
The All Progressives Congress (APC) leader also stated that he does not support price control measures and will not pursue that route.
“I don’t believe in price control; we will focus on ensuring a steady supply to the market,” he added.
Nigeria, the most populous country in Africa, is grappling with energy shortages, as all state-owned refineries are non-operational. The country relies heavily on imported refined petroleum products, with the state-run NNPC as the primary importer.
Fuel queues have become a common sight, and petrol prices have surged since the subsidy removal in May 2023, rising from around N200 per liter to over N1,000, straining citizens who depend on petrol for vehicles and generators amid decades of unreliable electricity supply.
The government also unified foreign exchange windows, leading to a significant depreciation of the naira, which fell from about $1/N700 to over $1/N1,600 in the parallel market. This has caused food prices and other basic commodities to skyrocket as Nigerians face escalating inflation.