FG says things would have been worse if fuel subsidy hadn't gone

Despite the high cost of living occasioned by fuel subsidy removal in May 2023, the Federal Government said the current economic situation of the country would have been worse if President Bola Tinubu had not removed subsidy on petroleum.

The removal of subsidy triggered an unprecedented increase in the price of petrol as the price of the commodity rose from ₦165 per litre to over ₦600.

This consequently affected the prices of other goods across the country leading to an increase in the cost of living.

However, the Minister of Information and National Orientation, Mohammed Malagi, while featuring on Channels Television’s breakfast show Sunrise Daily on Thursday, February 1, 2024, maintained that subsidy removal was in the interest of Nigerians.

He said even though the president knew his decision would cause Nigerians pain, Malagi believes the situation of the country would have been worse if he had not removed it.

He said, “You’re premising your argument on the fact this problem just started yesterday. The foundation of our economy had taken a beating a long time ago. The substructure of our national economy has been one that cannot hold a meaningful substructure on it.

“So, it is important that Nigerians recognise that the President and his team would have to go back to reset that and that is why from day one.

“Look, subsidy issue has to go’. He had to expect that there would be this pain, of course. He anticipated that Nigerians would encounter some difficulties. But it would be worse if that subsidy did not go. It would have been difficult to carry out any meaningful development. We needed to free up resources.”

Malagi further argued that when subsidy was in place, its impact was not felt by the masses as some selected few were benefiting from it.