Economist Says Fuel Subsidy Removal Failed Nigerians, No Real Benefits Seen

Economist Dr Samson Simon of ARKK Economics & Data Limited told DAILY POST that the Tinubu administration's fuel subsidy removal has not delivered the promised economic and social benefits. He explained that while officials argued the saved subsidy money would fund education, healthcare and infrastructure, the increase in Federation Account Allocation Committee (FAAC) disbursements is largely nominal, driven by the naira’s depreciation. Before Tinubu took office, $1 billion translated to about ₦460 billion; now the same dollar buys over ₦1.3 trillion, creating a money‑illusion effect.

Simon said the policy has hit the poorest hardest. With no commensurate cushioning measures, transport and production costs have risen, pushing up food prices and squeezing households that were already living below the poverty line. He rejected the claim that subsidy mainly benefited the rich, noting that although wealthier Nigerians used more fuel in absolute terms, the removal now burdens the bottom decile most severely because they have little capacity to absorb higher living costs.

The economist urged the government to focus on protecting the most vulnerable rather than chasing a return to pre‑subsidy petrol prices, which he doubts will fall below ₦200 again given the fiscal burden. He called for a proper cost‑benefit analysis before any further policy shifts.

With fuel unlikely to drop below ₦200, will you adjust your spending, demand targeted government aid, or absorb the higher cost of living?

SOURCE: https://dailypost.ng/2026/09/25/subsidy-removal-nigerians-paying-price-with-no-benefits-economist/