TMSG Defends Tinubu’s Fuel Subsidy Removal, Says Benefits Outweigh Economic Hardships By Raymond Enoch

The Tinubu Media Support Group (TMSG) has defended President Bola Tinubu’s decision to remove the contentious fuel subsidy, describing the policy as a critical economic reform that has expanded government revenue, strengthened fiscal capacity and created opportunities for increased investment in national development.

The group maintained that President Tinubu has no reason to regret the decision, arguing that the benefits accruing to the country since the inception of his administration outweigh calls by opposition politicians for the restoration of the subsidy.

In a statement signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, the group said recent economic and fiscal developments had vindicated the President’s decision, dismissing renewed political arguments for a return to the subsidy regime as misplaced.

TMSG expressed surprise that the removal of fuel subsidy remained a subject of political controversy, suggesting that some opposition presidential aspirants were exploiting the prevailing economic difficulties and rising cost of living to attract electoral support ahead of the 2027 presidential election.

According to the group, the policy has significantly increased revenue available to federal and state governments, citing a World Bank report which reportedly indicated a 93 per cent increase in revenue accruing to Nigeria’s 36 states and the Federal Capital Territory.

It argued that despite concerns over the impact of naira depreciation on the real value of increased allocations, state governments now have greater financial capacity to execute capital projects, settle inherited debts and clear outstanding workers’ salary arrears.

The group consequently attributed improved infrastructure delivery and increased development activities in several states to the additional fiscal resources made available following the removal of fuel subsidy.

At the federal level, TMSG said the policy had created the fiscal space required to support social intervention programmes, including the Nigerian Education Loan Fund (NELFUND), through which more than 1.5 million students have reportedly benefited in less than two years.

It also pointed to the expansion of the Federal Government’s targeted cash transfer programme, which it said had reached approximately 10 million households, describing the interventions as evidence of how resources previously committed to fuel subsidy could be redirected towards social development.

The group further identified increased capital funding for infrastructure, including the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, as part of the dividends of the policy, while arguing that the removal had strengthened the government’s capacity to sustain major projects inherited from previous administrations.

On the education sector, TMSG maintained that increased funding for tertiary institutions had contributed to industrial stability in the university system, noting that there had been no nationwide university strike since the Tinubu administration assumed office in May 2023.

It equally linked the relative stability of the foreign exchange market to the subsidy removal, arguing that the Federal Government no longer had to expend scarce foreign reserves to finance payments associated with imported petroleum products.

The group also highlighted the operationalisation of the Dangote Refinery, describing the absence of government-funded fuel subsidies as an important factor in creating a more sustainable environment for domestic refining.

Reacting to recent calls by former Vice President Atiku Abubakar to restore fuel subsidy if elected President in January 2027, TMSG questioned the economic sustainability of such a proposal.

It acknowledged that the removal of subsidy had coincided with significant increases in petrol prices and the cost of living but argued that Nigeria’s economic difficulties should also be understood within the context of wider global inflationary pressures and geopolitical tensions, particularly the conflict in the Middle East.

The group said it was therefore inappropriate to attribute the country’s entire cost-of-living crisis to President Tinubu’s subsidy policy, insisting that the more pressing priority should be ensuring that state governments effectively utilise their increased revenues to improve citizens’ welfare.

It urged Nigerians to hold subnational governments accountable for translating higher allocations into tangible improvements in infrastructure, social services and living standards.

Looking ahead, TMSG said it expected the Federal Government to accelerate the deployment of Compressed Natural Gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.

It described these measures as essential components of the broader benefits expected from the subsidy removal, stressing that the ultimate justification for the reform should be its capacity to translate increased public revenue into improved living conditions for Nigerians.

The group maintained that while the economic adjustment had imposed significant pressures on households, reversing the policy would undermine the fiscal opportunities created by the reform, insisting that the focus should now shift towards delivering measurable social and economic benefits to citizens.