Nigeria: Why Subsidy Should Never Crawl Back Into Nigeria's Economic Discourse

What the report says

In a Daily Trust commentary published from Abuja and distributed by AllAfrica on 8 September 2026, Gboyega Nasir Isiaka argues that Nigeria should not return to petrol subsidy as part of the country’s economic debate under President Bola Ahmed Tinubu. He says public policy should remain open to scrutiny, but contends that using a simple growth formula, such as the Rule of 70, to justify reversing subsidy removal is too narrow for Nigeria’s more complex economy.

The piece says petrol subsidy long served as a policy tool to limit prices and cushion consumers, but became increasingly expensive as Nigeria relied more on imported fuel and struggled with weak domestic refining. According to the commentary, the former system encouraged smuggling, price distortions and heavy government spending, while diverting resources from infrastructure, education, health and other priorities. The author presents the subsidy removal as part of a broader reform effort aimed at easing fiscal pressure and improving foreign-exchange stability.

Isiaka acknowledges that the policy shift has imposed immediate hardship on households, but argues that the answer is not a return to universal fuel support. Instead, he points to international examples, including Indonesia, Iran, the Philippines and Ghana, as evidence that subsidy reforms tend to last when governments combine them with clear communication, social protection and visible use of savings.

The commentary concludes that reversing the reform would restore the old fiscal burden without fixing Nigeria’s deeper structural problems. It frames the central challenge as building a post-subsidy economy that delivers stronger institutions, higher productivity and broader opportunity.