The member representing Igbo-Eze North/Udenu Federal Constituency, Rt. Hon. Dennis Nnamdi Agbo (FCA), has described President Bola Ahmed Tinubu’s removal of petrol subsidy as one of the most patriotic decisions by any Nigerian president since independence, while lamenting the poor delivery of social intervention programmes meant to cushion the hardship caused by the reform.
Agbo made the remarks on Wednesday, October 14, 2026, while delivering a public lecture at the University of Nigeria, Nsukka, titled “Three Years of Post-Subsidy Removal: Evaluating the Socio-Economic Effects of Nigeria’s Deregulated Downstream Sector.” He defended the policy as a major step towards economic recovery but warned that the failure to adequately protect vulnerable Nigerians had created a troubling disconnect between reform gains and the living conditions of ordinary citizens.
How Tinubu’s Announcement Shook the Subsidy System
Recalling Tinubu’s inauguration on May 29, 2023, Agbo said the President’s announcement that “Subsidy is Gone” was unexpected, even within the government, and disrupted the operations of powerful interests that had benefited from the old system.
“The clause of declaration was not part of the speech,” the lawmaker said. “Not even a confidential secretary or staff had any idea.”
He argued that the policy helped curb fuel smuggling, exposed inflated petrol consumption claims and created opportunities for private-sector investment in domestic refining.
According to Agbo, reported daily petrol consumption figures that had reached 60 million litres fell to about 40 million litres following the removal of the subsidy.
He also cited the Dangote Refinery as an example of the opportunities created by the changing downstream petroleum sector, describing it as a major domestic supplier with growing export capacity.
“The stranglehold on the nation was removed. Nigeria could breathe again,” Agbo declared.
Agbo Cites Revenue Gains, Economic Growth
The lawmaker said subsidy removal had significantly increased the funds available for distribution among the federal, state and local governments.
He estimated that subsidy removal was saving the government about ₦700 billion monthly, while foreign exchange market unification contributed another ₦600 billion, bringing the combined monthly fiscal gains from the two reforms to approximately ₦1.3 trillion.
Citing figures referenced in his lecture, Agbo said Nigeria’s real gross domestic product growth rose from 3.5 per cent in 2024 to 3.9 per cent in 2025 and 4.2 per cent in the first half of 2026.
He added that federation revenues increased by 69 per cent in real terms between 2023 and 2025, while federal capital expenditure had remained at about 70 per cent of the budget for three consecutive years, compared with between 25 and 30 per cent previously.
Agbo said the increased fiscal resources had supported major infrastructure projects, including the Lagos-Calabar Coastal Highway, road projects across the country and the national gas grid.
He also pointed to improved fiscal capacity among state governments, noting that some had cleared salary and pension arrears while expanding capital projects.
Enugu State, he said, offered an example of the potential benefits of increased public revenue, with its budget rising from ₦167 billion in 2023 to ₦1.617 trillion in 2026. He further cited a more than 1,000 per cent increase in internally generated revenue and capital spending that consistently exceeded 80 per cent of the state budget.
‘Households Remain Under Serious Pressure’
Despite defending the reform, Agbo acknowledged its severe impact on households, particularly low-income earners and small businesses.
He noted that petrol prices more than doubled in the first month after the subsidy was removed, triggering increases in transport fares, food prices and the cost of operating generators.
“A lower inflation rate does not mean prices have returned to their old levels,” he cautioned. “Households whose incomes have not caught up remain under serious pressure.”
The lawmaker said the economic gains associated with the reform would mean little to struggling Nigerians unless they translated into tangible improvements in living conditions.
Agbo Faults NG-CARES, Announces Proposed Commission
Agbo reserved some of his strongest criticism for the implementation of the Nigeria Community Action for Resilience and Economic Stimulus (NG-CARES) programme, a World Bank-supported intervention designed to assist vulnerable households and businesses.
He said that despite hundreds of billions of naira reportedly released to states for cash transfers, public works, agricultural support and grants to micro, small and medium-sized enterprises, many intended beneficiaries were still struggling to access relief.
“There is still a loud cry of government neglect,” he said.
Agbo blamed what he described as weak commitment by some state governments, partly arising from a misunderstanding of the programme’s funding structure, for poor delivery of assistance to low-income groups.
He disclosed that the House Committee on NG-CARES had commenced a comprehensive investigation into the programme under its constitutional oversight powers.
As part of efforts to address the shortcomings, Agbo said the committee was preparing a bill to establish a permanent NG-CARES Commission to strengthen the delivery of social protection programmes.
Under the proposed arrangement, the commission would be funded through a percentage of the savings generated by the economic reforms, capped at 10 per cent and charged to the Federation’s Consolidated Revenue Fund, rather than placing the financial burden on state governments.
The proposal, he said, was intended to provide a more sustainable funding mechanism for social intervention and ensure that vulnerable Nigerians benefit more directly from the gains of economic reforms.
Minimum Wage, Student Loans and CNG Among Relief Measures
Agbo also highlighted other federal government initiatives intended to ease the economic burden on Nigerians, including the increase in the national minimum wage to ₦70,000, the Nigerian Education Loan Fund (NELFUND), the Consumer Credit Corporation (CREDICORP), expanded compressed natural gas adoption and solar energy deployment.
He cited the impact of CNG-powered transportation in Enugu State, saying fares on the Nsukka route had fallen from ₦3,500 to ₦1,500.
He also referenced the HOPE series of World Bank-backed programmes targeting improvements in healthcare, education and governance.
However, his central argument was that such initiatives must be effectively implemented and reach the people for whom they were designed.
‘Permanent Reform Requires Permanent Institutions’
Drawing lessons from India’s Direct Benefit Transfer system and employment guarantee scheme, China’s productive poverty-reduction initiatives, and Brazil’s Bolsa Família social protection programme, Agbo argued that Nigeria needed lasting institutions rather than occasional cash distributions.
“Permanent reform requires permanent institutions of social protection,” he said. “A country cannot build an enduring social contract on occasional distributions alone.”
He maintained that the long-term success of subsidy removal would depend not only on the government’s ability to sustain fiscal gains but also on its capacity to protect vulnerable households from the immediate and lingering effects of economic adjustment.
Agbo ended his lecture with an emphatic declaration: “Subsidy is gone, and gone for good!”
He described the three years since the policy was introduced as a period marked by sacrifice, resistance from vested interests and economic changes, insisting that Nigeria should not return to the former subsidy regime.
His address at the University of Nigeria, Nsukka, comes amid continuing debate over the economic consequences of subsidy removal, the distribution of increased government revenue and the effectiveness of social protection programmes as Nigerians continue to grapple with the cost of living.
