Presidency Reveals Why Tinubu Refuses to Reintroduce Fuel Subsidy

The Presidency has explained why President Bola Tinubu has declined to reinstate fuel subsidy in Nigeria.

Speaking during an interview, the Special Adviser to the President on Policy Communications, Daniel Bwala, said the decision was largely informed by widespread fraud in the petroleum sector.

According to him, past subsidy arrangements were not primarily benefiting ordinary Nigerians but were instead being exploited by fraudulent operators within the industry, including non-Nigerians.

“The reason President Tinubu has refused to return the subsidy on fuel is that historically the beneficiaries of this subsidy are not the Nigerian people. It is fraud people in that industry,” Bwala said.

He added that the administration is not opposed to the concept of subsidies in principle, noting that the government continues to subsidise key sectors such as healthcare and agriculture.

“The concept of subsidy itself is not anathema to this government. That’s why you see that we have subsidised dialysis by 50%. We have subsidised agricultural inputs and other things that affect our people,” he explained.

Bwala also pointed out that state governments are currently benefiting from increased revenue following the removal of fuel subsidy.

He described President Tinubu’s leadership style as flexible rather than rigid, stressing that policy decisions are guided by prevailing national needs.

“President Bola Tinubu’s style of leadership is not rigid. It is flexible. That’s why even with borrowing, he said it is not leprosy,” he said.

He further noted that if circumstances require it, the administration could still consider targeted subsidy interventions in the future.