The National Institute for Policy and Strategic Studies (NIPSS) has described the removal of fuel subsidy as a necessary and timely decision, urging Nigerians to endure the immediate economic challenges, as the long-term benefits will outweigh the short-term difficulties.
President Bola Tinubu’s announcement of subsidy removal during his inauguration came as a surprise to many, leading to an immediate increase in fuel prices and widespread public backlash. Many Nigerians criticized the government for not implementing adequate measures to cushion the impact of the policy shift.
However, the Director General of NIPSS, Ayo Omotayo, defended the decision, emphasizing that while the benefits may not be immediate, they will become evident over time.
“Well, most of the benefits will be in the medium and long term. In the short term, the government has introduced palliatives to help those struggling—especially the poor—adjust to the new reality. We all need to make some adjustments to our spending,” Omotayo stated on Tuesday.
He acknowledged the initial economic strain but reassured Nigerians that their sacrifices today would yield significant gains in the future.
Tinubu’s policy marks the end of Nigeria’s long-standing fuel subsidy program, which had kept domestic fuel prices artificially low for decades. Despite being an oil-rich nation, Nigeria has limited refining capacity, relying on crude-for-gasoline swaps that drained government revenue, strained foreign exchange reserves, and contributed to mounting national debt.
During his campaign, Tinubu pledged to end the costly subsidy, and upon taking office, he affirmed, “Fuel subsidy is gone.” The abrupt policy shift created uncertainty, leading to a surge in fuel prices and public concern.
Despite the immediate hardships, the government insists that subsidy removal will stabilize the economy in the long run, freeing up resources for infrastructure, social programs, and economic growth.
