ABUJA, Nigeria – The removal of fuel subsidies in Nigeria, as announced by President Bola Tinubu on May 29, 2023, has led to a decrease in the country’s daily petrol consumption from 65 million to 40 million litres.
The reduction was disclosed by the Governor of Abia State, Alex Otti, during the inauguration of the National Economic Council, NEC, on Thursday, June 15, 2023.
The meeting, chaired by Vice President Kashim Shettima, took place in the Council Chamber of the Presidential Villa in Abuja.
Tinubu addressed the NEC, expressing his willingness to collaborate on governance to address economic challenges and improve the welfare of Nigerians, and asserted that he would not allow himself to become an excuse for failure.
Governor Bala Mohammed of Bauchi State shared that the government had conducted a comprehensive review of the issues associated with the removal of the fuel subsidy, acknowledging the challenges and problems it posed.
The government has established a committee within the council, tasked with proposing solutions to mitigate the impact of subsidy removal on workers and vulnerable groups.
The committee includes governors from Kebbi, Anambra, Benue, Kaduna, Bauchi, Cross River, and Oyo states.
Speaking after the meeting, Otti mentioned that the removal of subsidies on petroleum and foreign exchange had inevitably led to increased prices.
He highlighted the efforts of the National Automotive Design and Development Council, noting the positive developments in the automotive industry.
The Council revealed that six states, including Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna, and Kano, have benefited from domestic vehicle production or assembly by Nigerian companies.
Governor Otti praised President Tinubu’s administration for its bold decision to remove subsidies while creating palliatives to mitigate the economic impact.
He revealed that the removal had reduced daily fuel consumption from approximately 66-67 million litres to just about 40 million litres, and predicted that consumption would continue to decrease over time.
The governor acknowledged the implications of the subsidy removal, especially for the poorest citizens, and said that the government is exploring palliative measures to alleviate the financial burden on these individuals.
