The Leader of the Senate, Senator Opeyemi Bamidele, on Monday explained how key beneficiaries of the fuel subsidy regime made governance difficult for President Bola Ahmed Tinubu during the first eighteen months of his administration.
Bamidele, who represents Ekiti Central Senatorial District, also expressed optimism that the 2025 Appropriation Act would largely address Nigeria’s socio-economic challenges at both the national and sub-national levels.
In a statement issued to journalist yesterday in Abuja, by his Directorate of Media and Public Affairs, Bamidele highlighted the rationale behind the removal of fuel subsidy at the inception of the Tinubu administration and the political resistance it triggered.
He outlined how powerful economic actors, who profited heavily from the subsidy scheme, fought back to undermine the Tinubu administration’s reforms aimed at stabilizing the economy.
“I am convinced that the president did the right thing by removing the fuel subsidy, for which the 9th National Assembly made provision only until May 2023. The people making governance difficult for President Tinubu were those benefiting from the subsidy.
“It was not the common men and women of this country who were enjoying the fuel subsidy. It was the cabal who had access to the scheme, taking away resources in the name of the masses. The masses did not benefit from it,” Bamidele stated.
He explained that the decision to remove the subsidy was rooted in a prior consensus reached with the executive during the 9th National Assembly, which determined that the subsidy was no longer in Nigeria’s best interest.
“In the 2023 budget, we only provided funding for the subsidy till May 2023. Whether President Tinubu announced its removal or not, there was no longer any provision for it. Even if he had not declared it gone, the subsidy would have ended just two days after his inauguration,” he added.
He further noted that retaining the fuel subsidy would have denied sub-national governments—states and local governments—adequate statutory allocations from the Federation Account.
According to him, continuing the subsidy programme would have pushed Nigeria into a fiscal crisis, risking an economic meltdown due to the country’s inability to sustain the scheme.
“The proceeds from the subsidy removal are now being allocated directly to sub-national governments to stimulate development and strengthen the domestic economy. This is a key point we must continue to emphasize in public discourse,” he added.
Bamidele stressed that managing an economy requires strategic measures, some of which may not yield immediate results. “If the subsidy had not been removed, our economy would have been flat on the floor by now,” he warned.
Despite being less than two years into office, the administration, according to Bamidele, has already achieved significant progress across critical sectors, with ongoing reforms aimed at deepening these gains.
He expressed confidence that the 2025 Appropriation Act would provide practical solutions to the country’s challenges, particularly at the grassroots.
“Unfortunately, many people are not paying attention to what is happening at the sub-national level. Statutory allocations to state and local governments have increased significantly, but public focus remains solely on the federal government,” he noted.
He urged stakeholders to scrutinize how sub-national budgets are being structured, particularly whether they prioritize critical sectors like education, health, social welfare, and agriculture.
“The federal government is now allocating less to recurrent expenditure and more to capital projects. This is a major shift from previous fiscal practices since the return to democracy, as we are now spending less on consumables,” he said.
He further commended President Tinubu for introducing measures to stabilize the domestic economy, highlighting the government’s resolve not to retrench workers despite fiscal pressures.
“Retrenchment is not on the table for this administration because it will cause more harm than good. We are already contending with serious security challenges that have affected sectors like agriculture, where farmers were driven from their lands.
“However, the security situation is improving. Internally Displaced Persons (IDPs) are returning home, and farmers are gradually returning to their farms. While it is not yet Uhuru, things are improving, and I am confident the situation will be markedly different very soon,” he said.
