FG Rules Out Return of Petrol Subsidy, Says Reforms Saved Nigeria From Collapse

The Federal Government has ruled out any plan to bring back petrol subsidy, saying the reforms introduced by President Bola Tinubu’s administration were necessary to prevent the country from sliding into deeper economic difficulties.

Secretary to the Government of the Federation (SGF), Senator George Akume, made this known on Wednesday in Abuja while speaking at the 66th Independence Anniversary Lecture.

Akume, through his Special Adviser on Media and Publicity, Yomi Odunuga, said the government would not return to what he described as the previous petrol subsidy system.

According to him, the administration took several difficult decisions immediately after assuming office in 2023, including the removal of petrol subsidy, unification of the foreign exchange market, and tax and other fiscal reforms.

Akume said the decisions were aimed at restoring economic stability and rebuilding the country’s finances.

“This administration took office in 2023 and immediately took bold decisions needed to save the nation from imminent collapse. Such decisions include the removal of the petrol subsidy, unification of the foreign-exchange market, tax and other fiscal reforms, etc. These were difficult decisions, but necessary to rebuild stability and we have started enjoying the results,” he said.

The SGF, citing World Bank figures, said Nigeria’s real Gross Domestic Product (GDP) grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent recorded during the same period a year earlier.

He, however, said the government’s priority was to ensure that economic growth translated into more jobs and higher incomes for Nigerians.

On alternative fuel, Akume said the government’s transition to Compressed Natural Gas (CNG) was helping to reduce transportation and fuel costs.

He disclosed that more than 120,000 vehicles had been converted to CNG, while over 400 conversion centres and 90 fuelling stations had been established across the country.

According to him, CNG-powered buses were already transporting millions of passengers at fares below those charged by petrol-powered buses.

The SGF also said the Federal Government was addressing challenges in the power sector through measures including the clearance of legacy debts, increased investment, and improvements in electricity transmission and billing.

He said the country had also witnessed significant investment in infrastructure over the past three and a half years.

Akume listed the Lagos-Calabar Coastal Highway, Abuja-Kano Highway, East-West Road, railway modernisation and port reforms among the projects expected to improve transportation, trade and economic activities.

He added that the government was expanding mortgage finance as part of efforts to boost housing development and create jobs.

In the agricultural sector, Akume said the World Bank had approved a $500 million credit facility for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) project.

He said the initiative was designed to improve the productivity of smallholder farmers, strengthen agricultural value chains and improve food and nutrition security.

Speaking on youth development, the SGF said more than 60 per cent of Nigerians were below the age of 25.

He said the government had expanded the Education Loan Fund to enable more students to access university and vocational education, while technical and vocational institutions were being strengthened to provide skills required by industries.

Akume also urged Nigerians in the diaspora to invest more in the country, noting that their contribution could go beyond remittances to include ideas, investments and expertise.

On healthcare and social protection, he said the government was equipping thousands of primary healthcare centres and expanding social safety programmes, including cash transfers and other essential services for vulnerable families.

He also said the government was strengthening national security through improved equipment, intelligence and coordination.

According to him, the government had introduced a new National Threat Assessment and a five-year Strategic Defence Plan.

“Nothing matters more than the safety of our people. When communities have opportunities and trust in justice, crime and violence decline. In that sense, development and security go hand in hand,” Akume said.

Also speaking at the event, the Minister of Information and National Orientation, Mohammed Idris, said Nigeria’s economy recorded 4.43 per cent growth in the second quarter of 2026.

Idris said domestic refining capacity was expanding, with investment returning to key sectors of the economy.

He acknowledged that the reforms introduced over the past three years had been difficult and required sacrifices and patience from Nigerians.

The minister also called for informed public discussion as the country approaches another electoral cycle, stressing the importance of facts, verification and national cohesion.

“Political differences are legitimate in a democracy; they must never diminish our common identity as Nigerians,” he said.

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