Former Speaker of the House of Representatives, Yakubu Dogara, has clarified that President Bola Tinubu was not responsible for the removal of the fuel subsidy in Nigeria, despite making the announcement in May 2023.
Speaking during an interview on Channels Television on Friday, Dogara revealed that there was no provision for fuel subsidy in the national budget even before Tinubu’s administration began. He insisted that while the removal of the fuel subsidy was a step in the right direction, it was not initiated by the current president.
The former speaker explained that the fuel subsidy had already been excluded from the budget, and President Tinubu’s announcement merely highlighted an existing reality.
“There was no provision for it,” Dogara said. “Anyone who tells you that Tinubu suspended it is just joking because how did he suspend payment that was not budgeted for in the first place?”
Dogara went further to explain that the national budget, which is guided by the Constitution, contained no allocation for the fuel subsidy. This, he argued, meant that there was no legal or financial basis for continuing with subsidy payments.
“The truth is that Tinubu was not the one who removed the subsidy,” Dogara continued. “But he did make that pronouncement. There was no provision for it in the budget, and you know the budget is backed by the Constitution. If there’s no provision for it in the budget, then how do you pay for it?”
Dogara’s remarks come as fuel prices continue to rise, causing frustration among Nigerians. Many have linked the hike in petrol prices to the removal of the fuel subsidy, which President Tinubu announced shortly after assuming office.
However, according to Dogara, the groundwork for removing the subsidy had already been laid by the previous administration.
Fuel subsidy has long been a controversial issue in Nigeria. The subsidy was initially introduced to make fuel affordable for Nigerians by compensating petroleum marketers for the difference between the regulated pump price and the actual market price of fuel.
For decades, Nigeria’s government spent billions of naira to keep fuel prices low. However, this policy has been heavily criticised as unsustainable, especially in recent years, as global oil prices rose, putting a strain on Nigeria’s economy. The cost of the subsidy ballooned, making it difficult for the government to continue funding it without worsening the country’s fiscal deficit.
Before President Tinubu’s administration, the government under President Muhammadu Buhari had already taken steps to reduce and eventually remove the subsidy. By the time Tinubu came into office, the subsidy had been left out of the 2023 national budget, which was passed and signed into law before his administration began.
Despite the challenges it has created, Yakubu Dogara insisted that removing the fuel subsidy was necessary to save the country from financial ruin. He described the subsidy as an expensive burden that Nigeria could no longer afford.
Dogara explained that the subsidy was draining government resources, making it difficult to fund critical infrastructure and social services.
“Subsidy removal is the right decision for Nigeria, even though we know it has caused hardship for many Nigerians,” Dogara said. “But we need to understand that the subsidy was a burden that the country could no longer carry. It was simply unsustainable.”
He added that while the decision was difficult, it was necessary for the long-term economic health of the country.
“We can’t continue to spend billions on subsidising fuel when those funds could be used to invest in other sectors like health, education, and infrastructure,” he added.