Fuel Subsidy Has Returned In Nigeria – Says Obasanjo

Former President Olusegun Obasanjo has disclosed that the fuel subsidy, which the Federal Government claimed it eliminated in 2023, has been reinstated in response to rising inflation.

It could be recalled that during his inaugural address on May 29, 2023, President Bola Tinubu asserted that the fuel subsidy was “gone.”

This development has resulted in an increase in petrol prices, escalating from approximately N200 to over N600 per litre.
The removal of the fuel subsidy also led to the increase in price of food and commodities, causing untold hardship for Nigerians.

This development has also affected many businesses in the country.

Speaking, however, in an interview with the Financial Times, Obasanjo criticized the government’s approach to the subsidy removal, suggesting that appropriate measures should have been put in place prior to its elimination.

He further clarified that the subsidy has now “returned” as a consequence of the prevailing inflation rate.

“There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back,” Obasanjo said.

Don’t miss out on any real-time information. Join our WhatsApp group to stay updated.

CLICK HERE TO JOIN

He also highlighted the need for investor confidence in Nigeria, stating, “You have to go from a transactional economy to a transformational economy.”

It is important to highlight that among the various demands of the current nationwide protests is the restoration of the fuel subsidy program.

However, in his broadcast on Sunday, President Tinubu dismissed the possibility of reinstating the fuel subsidy.

He characterized the removal of the subsidy as a difficult yet essential decision, contending that it had acted as a “noose around the economic jugular of our Nation” and had impeded economic growth and advancement.