Oil
Tinubu rules out petrol subsidy return, citing bankruptcy risks
President Bola Ahmed Tinubu has firmly rejected proposals to reinstate petrol subsidies, warning that reversing reforms would drive the nation toward financial ruin.
Key points
- President Tinubu stated that Nigeria would face bankruptcy if the petrol subsidy regime were reintroduced.
- The remarks were made at an event organised by the City Boy Movement in Abuja.
- Vice-President Kashim Shettima defended the administration's economic reforms, citing recent growth figures.
What happened
President Bola Ahmed Tinubu has reiterated his administration's refusal to bring back the petrol subsidy, comparing any such reversal to asking the biblical Moses to return to Egypt, according to reports by the Nigerian Tribune and Punch. Speaking at an Abuja event organised by the City Boy Movement, Tinubu defended the removal of the subsidy implemented on his first day in office in May 2023.
The declaration was a direct response to proposals from political opponents, including African Democratic Congress presidential candidate Atiku Abubakar, who had previously suggested a capped production subsidy tied to domestic refining. Tinubu maintained that the country lacked the financial capacity to sustain fuel price supports.
Vice-President Kashim Shettima also addressed the gathering, asserting that the economy would have collapsed without the far-reaching reforms undertaken by the current administration. Shettima pointed to rising foreign reserves and recent economic growth figures as proof that the country is on a stable trajectory, while urging supporters to focus on policy discussions ahead of upcoming political campaigns.
Why it matters
The debate over fuel subsidies remains a central fault line in Nigerian energy politics, directly impacting fiscal stability and downstream market operations. Fuel subsidies historically consumed a vast share of government revenues, crowding out capital expenditure on infrastructure and social programmes.
For energy investors and policymakers, maintaining a deregulated downstream sector is critical for attracting private capital into domestic refining and distribution infrastructure. According to World Bank figures for 2025, fuel exports account for 85.9 percent of Nigeria's merchandise exports, underscoring the macro-economic sensitivity of petroleum product pricing and supply.
Eliminating the financial drain of subsidies is seen by proponents as essential for preserving public finances, particularly as the administration navigates foreign exchange adjustments with the naira reference rate standing at 1331.62 per US dollar. However, the political friction over energy costs highlights the ongoing challenge of balancing fiscal sustainability with consumer affordability in Africa's largest oil-producing economy.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.8% of Egypt’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
