Nigeria's Petrol Subsidy Removal Saves ₦53 Trillion Annually

Zacch Adedeji, the Chairman of the Nigeria Revenue Service, revealed in an interview that if President Bola Tinubu had not removed the petrol subsidy, Nigeria would have been spending approximately ₦53 trillion annually on it. The subsidy, introduced in 1973 during General Yakubu Gowon's regime to mitigate inflation and stabilize fuel prices, was institutionalized by General Olusegun Obasanjo in 1977 through the Petroleum Price Control Act.

Initially a temporary measure, the subsidy became a permanent fixture, leading to significant fiscal strain over the years. The regime was criticized for being unsustainable, with former President Muhammadu Buhari labeling it a "heavy burden on the national treasury." The Petroleum Industry Act of 2021 was enacted in response to these challenges.

Notable figures like Sanusi Lamido Sanusi and Ngozi Okonjo-Iweala have also commented on the unsustainable nature of funding consumption through borrowing for subsidy payments.