Subsidy removal necessary despite petrol price hikes — Oyedele
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the removal of petrol subsidy, arguing that decades of price increases failed to address the structural problems associated with the former arrangement.
Oyedele spoke on Wednesday while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
The minister said petrol prices had been adjusted about 3,050 times over the past 50 years without resolving the challenges associated with the subsidy regime.
According to him, the former arrangement placed significant pressure on public finances and restricted the government’s capacity to invest in infrastructure and essential social services.
He argued that ending the subsidy was necessary to address the underlying fiscal imbalance and redirect public resources towards national development.
Oyedele, however, acknowledged the need to cushion Nigerians against the effects of the policy, particularly low-income households affected by rising living costs.
He said the government had introduced targeted interventions to support vulnerable households and small businesses during the economic adjustment.
The minister disclosed that more than 10 million households had received cash transfers exceeding ₦600bn under the government’s social protection programmes.
He added that over 800,000 micro, small and medium-sized enterprises had benefited from subsidised credit facilities carrying single-digit interest rates.
