FG Rules Out Return of Petrol Subsidy, Insists Tinubu’s Economic Reforms Must Continue

The Federal Government has reaffirmed its decision not to restore petrol subsidy, insisting that President Bola Ahmed Tinubu’s economic reforms will continue despite concerns over the rising cost of living.

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, made the declaration on Monday during the 32nd Nigerian Economic Summit in Abuja.

Bagudu explained that the administration remained committed to policies designed to strengthen economic stability and address longstanding structural challenges.

Speaking at the summit, the minister maintained that restoring petrol subsidy would undermine the government’s economic reform programme.

He argued that the previous subsidy arrangement created distortions in the petroleum market and placed significant pressure on public finances.

According to Bagudu, President Tinubu has consistently directed government officials to maintain the reforms rather than reverse them.

The government’s position comes amid growing political debate ahead of the 2027 presidential election.

Former Vice-President Atiku Abubakar has proposed restoring petrol subsidy as part of his economic agenda.

The disagreement reflects competing approaches to addressing transportation costs, household expenses and economic hardship.

While government officials defend subsidy removal, critics continue to question whether the reforms are delivering sufficient relief to ordinary Nigerians.

Petrol prices remain a major concern for households and businesses because transportation costs influence food distribution, commercial activities and everyday expenses.

The government believes sustained reforms will encourage investment and support long-term economic growth.

However, the effectiveness of these policies will depend on improvements in employment, household income and purchasing power.

The Federal Government’s latest declaration signals that petrol subsidy removal will remain central to President Tinubu’s economic agenda.

As political discussions intensify ahead of 2027, Nigerians will continue assessing whether the administration’s reforms can deliver meaningful economic benefits.

Source: Leadership Newspaper, 27 October 2026.

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