Reported By Mary Udezue | Edited by: Gabriel Osa
LAGOS, Nigeria — Senator Olamilekan Solomon Adeola, representing Ogun West and chairman of the Senate Committee on Appropriations, has publicly argued that President **Bola Tinubu’s removal of fuel subsidies and accompanying tax reforms are saving Nigeria **more than ₦10 trillion every year and are critical to the country’s long-term economic stability and growth. Adeola made these remarks during a thanksgiving service in Ilaro, Ogun State, where he defended the federal government’s economic reform agenda and responded to critics of President Tinubu’s policies.
According to the senator, the fuel subsidy regime that had been in place for decades was a significant drain on public finances, forcing the government to borrow heavily — an estimated ₦6 trillion to ₦7 trillion annually — just to sustain subsidy payments. He said that with the fuel subsidy removed, the country is now saving in excess of ₦10 trillion each year, freeing up resources that can be redirected toward national development.
Adeola described the subsidy removal as a necessary step to relieve fiscal pressure on the federal budget and improve Nigeria’s economic outlook. “Before subsidy removal, the country was bleeding financially,” he said, adding that the micro-economy is stabilising and the administration is working toward strengthening the broader macroeconomic environment.
The senator also defended newly introduced tax reforms, dismissing suggestions of friction between the executive and legislative arms of government. He said the National Assembly and the presidency are aligned on the reform agenda, and any changes made to proposed tax legislation are being handled transparently and in the national interest.
Adeola pointed to large infrastructure initiatives such as the Lagos–Calabar Coastal Road and the Sokoto–Badagry Highway as visible outcomes reflecting the reinvestment of fiscal savings into long-term development projects. He said these projects signal the administration’s commitment to building a robust economic foundation that benefits Nigerians across regions.
Supporters of the reforms argue that eliminating costly subsidies and broadening the tax base will introduce predictability into Nigeria’s fiscal landscape, making it easier for businesses to operate and for government planning to be more strategic. They contend that these measures are essential for reducing budget deficits, expanding revenue sources, and financing critical social and physical infrastructure.
Critics of the subsidy removal, however, highlight the immediate economic hardships it has brought for ordinary Nigerians, such as rising fuel prices and higher transportation costs. These concerns remain a central point of contention in public debates about the pace and scale of economic reforms. Nonetheless, proponents like Adeola maintain that the long-term fiscal benefits outweigh short-term challenges and are integral to repositioning Nigeria on a more sustainable growth trajectory.
As Nigeria approaches future election cycles, debates over the impact and direction of these economic policies are likely to intensify, with supporters pointing to significant annual savings and opponents calling for more inclusive measures to ease transitional burdens on citizens.
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