ADC Questions Fuel Subsidy Savings as Petrol Prices Surge Under Tinubu
Nigeria’s opposition party, the African Democratic Congress, has raised concerns about the economic impact of fuel subsidy removal, claiming that petrol prices have risen dramatically since Bola Ahmed Tinubu assumed office.
The party says the sharp increase in fuel costs has worsened living conditions for millions of Nigerians and is demanding greater transparency regarding how funds saved from the subsidy removal are being used.
The criticism came from Bolaji Abdullahi, national publicity secretary of the ADC, who responded to comments from the ruling All Progressives Congress accusing the opposition of attempting to incite public dissatisfaction over economic reforms.
Petrol Prices Rise Sharply After Subsidy Removal
According to Abdullahi, the price of petrol in Nigeria has increased by nearly 500 percent since Tinubu took office in May 2023.
Before the removal of the subsidy, petrol sold for roughly ₦255 per litre in many parts of the country.
Today, the ADC claims prices have climbed to approximately ₦1,500 per litre in several regions.
The subsidy removal was one of the most significant economic reforms introduced by the current administration.
Supporters of the policy say the subsidy system had become financially unsustainable, costing the government trillions of naira annually.
However, critics argue that the sudden removal of the subsidy triggered severe inflationary pressures that continue to affect households across the country.
Fuel price increases have also pushed up the cost of transportation, electricity generation, and food distribution.
Opposition Raises Concerns Over Poverty Levels
Abdullahi said recent reports suggest that Nigeria’s poverty rate has increased significantly since the subsidy was removed.
He claimed that the national poverty rate has risen to about 63 percent, compared with approximately 50 percent before the policy change.
The opposition party argues that the figures illustrate the social consequences of the government’s economic reforms.
According to Abdullahi, millions of Nigerians have been pushed into financial hardship as a result of rising living costs.
The ADC said surveys conducted by independent organizations indicate widespread dissatisfaction with the current economic situation.
Surveys Reflect Public Frustration
The opposition spokesperson cited several statistics from recent public opinion surveys.
According to these reports:
93 percent of Nigerians believe the country is moving in the wrong direction.
88 percent describe the national economy as “bad.”
74 percent say their personal living conditions are poor.
Abdullahi stressed that these figures reflect the sentiments of ordinary citizens rather than political messaging from opposition parties.
“These are not opposition talking points,” he said, arguing that the data shows broad concern among Nigerians about the direction of the economy.
Rising Cost of Basic Necessities
Beyond fuel prices, the ADC said surveys also show that many Nigerians are struggling to meet basic needs.
The party cited data suggesting that large portions of the population have gone without essential services or goods during the past year.
According to the figures referenced in the statement:
82 percent of Nigerians reported lacking sufficient food at least once in the past year.
82 percent said they were unable to access medical care when needed.
79 percent reported going without cooking fuel.
74 percent experienced shortages of clean drinking water.
95 percent said they lacked a reliable source of cash income at some point during the year.
Abdullahi said these statistics demonstrate the depth of economic hardship currently affecting households across the country.
Questions Over Subsidy Savings
One of the central questions raised by the opposition party concerns how the government is using the funds saved from removing the petrol subsidy.
According to official government figures, the policy has generated approximately ₦6.4 trillion in savings.
The administration has previously said the funds would be redirected toward infrastructure, social programs, and other development priorities.
However, the ADC says Nigerians are yet to see clear evidence of how the money is being spent.
Abdullahi asked why key sectors of the economy continue to face funding challenges despite the reported savings.
He questioned why many local contractors remain unpaid and why universities still struggle with inadequate facilities.
The opposition party argues that transparency regarding the allocation of subsidy savings is necessary to restore public confidence.
Impact on Food Prices and Agriculture
The ADC also pointed to challenges in Nigeria’s agricultural sector, saying rising production costs are affecting domestic food supply.
According to Abdullahi, reports indicate that nearly 90 rice mills across Nigeria have shut down, while many others are operating far below capacity.
The closure of these mills, he said, could worsen food shortages and increase dependence on imported goods.
The opposition party also cited data from the National Bureau of Statistics, which reportedly shows a sharp increase in the country’s food import bill.
According to the figures referenced in the statement, Nigeria’s food import costs rose from ₦3.83 trillion in 2023 to ₦7.65 trillion.
This increase suggests that the country is spending significantly more on imported food products, potentially weakening local agricultural production.
Economic Reform Debate Intensifies
The debate over the removal of the petrol subsidy remains one of the most significant political and economic issues in Nigeria.
Supporters of the policy argue that subsidies were draining public finances and benefiting smugglers and fuel marketers rather than ordinary citizens.
They say removing the subsidy will free up resources for long-term economic development.
However, critics argue that the government implemented the reform without adequate social safety nets to protect vulnerable populations.
The resulting price increases have contributed to higher inflation across multiple sectors of the economy.
Government Maintains Hardship Is Temporary
Officials in the ruling All Progressives Congress have repeatedly acknowledged that economic reforms may cause temporary hardship.
However, they argue that the policies are necessary to stabilize Nigeria’s economy and create long-term growth.
Government representatives say reforms such as subsidy removal, currency adjustments, and fiscal restructuring are intended to correct structural weaknesses in the economy.
They also maintain that the benefits of these policies will become more visible over time.
Calls for Policies That Improve Living Conditions
The African Democratic Congress says economic policies should ultimately be judged by their impact on the daily lives of citizens.
Abdullahi said the widening gap between government assurances and the experiences of ordinary Nigerians could erode public trust if not addressed.
“When poverty rises significantly and millions struggle to afford basic necessities, it becomes clear that urgent policy adjustments may be necessary,” he said.
The opposition party urged the government to prioritise programs that directly improve living standards and reduce economic hardship.
A Growing National Debate
The issue of fuel subsidy removal continues to shape Nigeria’s economic and political conversation.
With inflation, unemployment, and rising living costs dominating public discussion, both government officials and opposition parties are likely to continue debating the long-term consequences of the policy.
For many Nigerians, the central question remains whether the sacrifices associated with economic reform will eventually translate into improved prosperity and stability.
Until then, the debate over petrol prices, poverty levels, and the use of subsidy savings is expected to remain a major topic in Nigeria’s national discourse.