Mr Tonade Akinwale, Chairman of the All Progressives Congress (APC) in Isolo Local Government Area of Lagos State, says the removal of fuel subsidy has strengthened Nigeria’s economic prospects, but requires stronger measures to protect vulnerable citizens.
Akinwale said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.
He acknowledged that the policy had imposed hardship on Nigerians, particularly through higher transportation and food costs.
“The removal of fuel subsidy was undoubtedly a difficult decision, and I understand the hardship it initially brought upon Nigerians,” Akinwale said.
He said the previous subsidy regime placed a huge burden on public finances, limiting resources available for infrastructure, education, healthcare and other critical sectors.
“Those resources could have been deployed to infrastructure, education, healthcare, security and other areas that directly affect the lives of citizens,” he said.
According to him, the decision to remove the subsidy was necessary, but the government must ensure that the gains from the reform translate into tangible benefits for Nigerians.
Akinwale said the policy should not be assessed solely by the price of petrol, but also by its impact on government finances, investment, production, employment and economic sustainability.
“Has it immediately translated into prosperity for every Nigerian? No. That would be unrealistic to claim. Nigerians have gone through significant short-term pain,” he said.
The APC chieftain said he did not support a return to the former blanket subsidy regime, arguing that doing so could recreate pressure on public finances.
“I do not support a return to the old, blanket fuel subsidy system. Reversing the policy would take us back to a model that placed a huge burden on public finances,” he said.
He called for stronger social protection, improved public transportation, increased local refining capacity, support for small businesses and improved electricity supply.
“What I support is a people-centred reform of the present system, with stronger social protection, better public transportation, investment in local refining and deliberate measures to reduce the cost of living,” Akinwale said.
He said the administration of President Bola Tinubu had demonstrated willingness to undertake difficult economic reforms, including changes to fuel subsidy, foreign exchange, taxation, public revenue and monetary policy.
“As Chairman of the ruling APC at the local government level, I will naturally defend the administration and its policies, but my defence is not based merely on political loyalty,” he said.
Akinwale said the reforms should be assessed objectively, adding that their ultimate success would depend on their ability to improve the living conditions of Nigerians.
“The greatest test before this administration is how to convert macroeconomic improvement into improvement in the daily lives of ordinary Nigerians,” he said.
He said economic growth should translate into affordable food, employment opportunities, better wages, reliable electricity, improved infrastructure and increased purchasing power.
He added that the government should sustain the reforms while continuously reviewing them to minimise their impact on vulnerable citizens.
“We should not abandon necessary reforms simply because they are painful. Rather, government must ensure that the vulnerable are protected while the economy adjusts,” he said.
Akinwale urged Nigerians to consider the long-term objectives of the reforms while expecting government to ensure that their benefits become more inclusive.
“The administration is on the right reform path, but the journey is not yet complete. The next phase must be about making the gains of these reforms more inclusive,” he said.
He said the objective should be to build an economy whose benefits are reflected not only in official economic indicators but also in the daily experiences of citizens.
“For me, the objective is not simply to have a stronger economy on paper. We want an economy that is stronger in the homes, businesses and communities of Nigerians,” Akinwale said.
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