Subsidy Removal Increased Economic Hardship — Ayo Adesina
By Adeyemi Obadimu
A former House of Representatives candidate for Abeokuta South Federal Constituency of Ogun State under the Social Democratic Party, Ayo Adesina, has criticised the removal of fuel subsidy, arguing that the policy has worsened economic hardship for Nigerians without delivering commensurate benefits.
Adesina alleged that the savings being touted by the Federal Government following the subsidy removal had not translated into meaningful improvements in the lives of Nigerians, claiming that some of the funds were being mismanaged or diverted by officials at both the federal and state levels.
He said the rising cost of petrol had also increased the financial burden on households and businesses, particularly manufacturers, who he argued were already struggling with poor infrastructure, unreliable electricity supply and insecurity.
According to him, affordable energy remains essential to economic growth, while the sharp increase in fuel prices has made it more difficult for businesses to operate and investors to establish production facilities in the country.
Adesina also rejected the argument that the subsidy regime was fundamentally fraudulent, saying the sharp rise in petrol prices after its removal demonstrated that the scheme had played a role in keeping fuel affordable.
“If we remove what we were told was a ‘fraudulent subsidy programme’, the price of the commodity it subsidises should not change significantly,” he said.
He noted that petrol prices rose from about N169 per litre to more than N1,400 per litre after the subsidy was removed, describing the development as evidence of the burden transferred to consumers.
Adesina acknowledged that fraud existed within the subsidy system but argued that the government should have targeted those responsible rather than abolishing the programme altogether.
He maintained that prosecuting individuals involved in subsidy fraud would have been preferable to scrapping a policy he said had benefited millions of Nigerians.
Drawing an analogy with the banking sector, Adesina said banks do not shut down their entire operations simply because fraudsters attempt to exploit their systems.
He therefore called for the reinstatement of the subsidy, arguing that the government should focus on eliminating corruption and leakages within the system while ensuring that the benefits of affordable fuel reach households and businesses.
