FG rules out return of petrol subsidy

By Frontline Reporters

ABUJA: The Federal Government has ruled out any return to the petrol subsidy regime, saying the reforms introduced by President Bola Tinubu were necessary to avert an economic crisis and restore stability.

Secretary to the Government of the Federation (SGF), Senator George Akume, stated this on Wednesday in Abuja at the 66th Independence Anniversary lecture.

According to a statement by his Special Adviser on Media and Publicity, Yomi Odunuga, Akume said the government would not reverse the petrol subsidy reform.

“We will not return to the ruinous petroleum subsidy regime of the past,” he said.

Akume said the administration took difficult decisions immediately after assuming office in 2023, including the removal of the petrol subsidy, unification of the foreign exchange market, and tax and other fiscal reforms.

“This administration took office in 2023 and immediately took bold decisions needed to save the nation from imminent collapse. Such decisions include the removal of the petrol subsidy, unification of the foreign-exchange market, tax and other fiscal reforms, etc. These were difficult decisions, but necessary to rebuild stability and we have started enjoying the results,” he said.

Citing World Bank data, the SGF said Nigeria’s real Gross Domestic Product (GDP) grew by 4.2 percent in the first half of 2026, compared with 3.9 percent in the corresponding period of 2025.

“The task before us now is to ensure that growth translates into jobs and higher incomes for all Nigerians,” he said.

On the government’s Compressed Natural Gas (CNG) initiative, Akume said more than 120,000 vehicles had been converted to CNG, with over 400 conversion centres and 90 fuelling stations established nationwide.

“This shift is cutting fuel costs for motorists and commuters. CNG buses now carry millions of passengers at fares far below those of petrol buses,” he said.

On electricity, Akume said the government was addressing challenges in the sector by clearing legacy debts, increasing investment and improving transmission and billing.

He also said the country had recorded significant investment in infrastructure, citing the Lagos-Calabar Coastal Highway, Abuja-Kano Highway, East-West Road, rail modernisation and port reforms as projects expected to improve trade and economic activity.

Akume said the government was also expanding mortgage finance to boost housing development and employment.

In agriculture, he said the World Bank had approved a $500 million credit for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) project.

“This initiative will raise smallholder productivity, strengthen value chains, and improve food and nutrition security,” he said.

On youth empowerment, Akume said more than 60 percent of Nigerians were below the age of 25.

He said the government had expanded the Education Loan Fund to enable more students to access university and vocational education, while strengthening technical and vocational institutions to provide skills required by industry.

“Our young people are not just leaders of tomorrow – they are partners in building Nigeria today,” he said.

Akume also urged Nigerians in the diaspora to invest in the country, saying they contribute more than remittances through ideas, investments and expertise.

On healthcare and social protection, he said the government was equipping thousands of primary healthcare centres and expanding social safety nets, including cash transfers and essential services for vulnerable households.

On security, the SGF commended the armed forces and said the government was improving equipment, intelligence and coordination through measures including a new National Threat Assessment and a five-year Strategic Defence Plan.

“Nothing matters more than the safety of our people. When communities have opportunities and trust in justice, crime and violence decline. In that sense, development and security go hand in hand,” he said.

Also speaking at the lecture, the Minister of Information and National Orientation, Mohammed Idris, said the economy grew by 4.43 percent in the second quarter of 2026.

Idris said domestic refining capacity was expanding, with investment returning to critical sectors.

He acknowledged that the government’s reforms over the past three years had been difficult and had required sacrifice and patience from Nigerians.

As the country approaches another electoral cycle, the minister urged stakeholders to promote public discourse based on facts, verification and national cohesion.

“Political differences are legitimate in a democracy; they must never diminish our common identity as Nigerians,” he said.