National Democratic Congress (NDC) Lagos Central Senatorial Candidate, Ladipo Johnson on Friday, criticized the removal of petrol subsidy by President Bola Ahmed Tinubu’s administration, arguing that the government failed to put adequate measures in place to cushion Nigerians from the economic impact of the policy.
Speaking on People’s Voice programme on Voice of the People TV, Mr Johnson said the government could not remove what he described as an economic safety net while allowing Nigerians to bear the full weight of rising fuel prices, transportation costs and living expenses.
Mr Johnson argued that the government removed an important economic buffer without putting adequate measures in place to protect Nigerians from the resulting increase in the cost of living.
“There hasn’t been enough fiscal discipline with this government. You cannot just remove a safety net without cushioning the impact on the population while simultaneously letting the currency float.”
The debate centres on the consequences of the policy for ordinary Nigerians, particularly as higher fuel prices have affected transportation, food distribution, household expenses and business operations.
Ekunjimi defends Tinubu’s fiscal reforms
Political analyst and good governance advocate Nelson Ekunjimi offered a contrasting position, arguing that the removal of the subsidy has increased revenues available to state governments.
Mr Ekunjimi described the subsidy regime as unsustainable and maintained that the additional resources accruing to states have given governors greater capacity to pay salaries and fund projects.
“The issue of fuel subsidy is an ugly past. During the subsidy era, states could not even pay a 30,000 Naira minimum wage. Today, allocations to states like Nasarawa have grown fourfold, enabling governors to pay higher wages. The subsidy was a fraud that had to go.”
The disagreement highlights one of the central questions surrounding the reforms: whether increased government revenues are translating into meaningful improvements in the lives of Nigerians.
How the reforms affect Nigerians
The reforms introduced since 2023 have significantly altered Nigeria’s economic environment.
While government revenues and allocations to states have increased, Nigerians have simultaneously faced higher transportation costs, food prices and other household expenses.
The debate on the programme also touched on multidimensional poverty and food insecurity, with concerns raised over the number of Nigerians struggling to meet basic needs.
The central issue remains whether increased public revenues can ultimately translate into better living conditions, employment, infrastructure and social protection for citizens.
Debate over possible implicit fuel subsidies
The programme examined emerging claims that although the government officially ended the petrol subsidy regime, elements of under-recovery may still exist within the petroleum sector.
Presenters pointed to figures contained in the 2026 budget consolidation framework, arguing that “in the file of NNPC, a certain amount of money is showing, knowing that some subsidies are still being paid, aside from every other padded budget that we actually saw.”
The claim raised questions about the transparency and sustainability of Nigeria’s current fuel-pricing system and whether government intervention may still be absorbing part of the cost of petroleum products.
Responding to arguments that subsidy removal was the only viable path forward, political analyst Mr Ekunjimi maintained that the previous system was unsustainable. He recalled that in 2022, “every proceed from crude oil sales had been used to cushion fuel subsidy,” leaving the Federal Account Allocation Committee to rely largely on non-oil revenue.
1986 SAP Comparison
The discussion drew comparisons between the current market-driven economic policies and Nigeria’s 1986 Structural Adjustment Programme (SAP) under the military government of General Ibrahim Babangida.
The host challenged defenders of the reforms, noting that SAP involved “naira devaluation” and “subsidy removal where the government cut fuel and fertilizer subsidies,” and questioned whether Nigeria was repeating mistakes made nearly four decades ago.
Rejecting the comparison, Mr Ekunjimi argued that Nigeria’s present economic circumstances are fundamentally different from previous periods.
Quoting philosopher Heraclitus, he said, “you cannot step twice into the same river,” stressing that “the situation in 1983, 1993, 1999, or 2003 are not the same.”
He also pointed to the substantial increase in federal allocations to state governments under the current system as evidence that the present circumstances differ from the SAP era.
However, Mr Johnson maintained that the government had failed to adequately learn from previous economic experiences, particularly by implementing multiple major reforms simultaneously.
“You do this at the same time that you are leaving your naira to float… and there hasn’t been enough fiscal discipline with this government.”
Opposition begins 2027 realignment
Beyond the immediate economic debate, the broadcast examined efforts by opposition leaders Atiku Abubakar and Peter Obi to build a stronger and more coordinated political front ahead of the 2027 general elections.
Addressing weaknesses recorded during the previous electoral cycle, Mr Johnson acknowledged that the opposition “didn’t even have agents everywhere at polling units” and lacked the necessary grassroots machinery to adequately protect its votes.
He said opposition strategists were now working to correct those shortcomings.
“We’ve looked at those inadequacies… to make sure that when the votes come in, they are protected around the country.”
Mr Johnson also said economic reform would remain central to the opposition’s political message, echoing Mr Obi’s argument that “you cannot import your way into prosperity… and you cannot tax your way into prosperity.”
He advocated a significant reduction in what he described as the cost of governance, arguing that government resources should be redirected towards productive sectors capable of improving living standards and strengthening the economy.
Controversy over U.S. law-enforcement records
The broadcast also featured an intense exchange over sealed foreign law-enforcement records and questions surrounding President Tinubu’s background.
Mr Johnson argued that the issue goes beyond political rivalry, insisting that voters have a legitimate interest in information concerning the person occupying the country’s highest political office.
“People deserve to know who is leading them and representing them. You cannot turn up to a foreign country with a green passport while the face of your country is seen as someone involved in the heroine or whatever industry. The voters need to know.” Mr Johnson said.
Addressing arguments that unproven or unresolved legal matters should not become campaign issues, Mr Johnson maintained that public accountability requires transparency from political leaders.
“They’ve said he hasn’t been convicted, but people deserve to know who is leading them and representing them.”
What It Means Ahead of 2027
The growing disagreement over economic reforms and the emerging opposition alignment point to a potentially highly contested 2027 election.
For Nigerians, the debate goes beyond political rivalry. It raises questions about whether government reforms are delivering tangible improvements, how the benefits of increased public revenue are being distributed and whether opposition parties can overcome their longstanding divisions.
The opposition’s ability to translate public dissatisfaction into a coordinated political movement will depend largely on whether its leaders can overcome individual ambitions and establish a credible alternative ahead of the election.
Background
President Bola Ahmed Tinubu announced the removal of the petrol subsidy shortly after assuming office in May 2023, while subsequent foreign-exchange reforms contributed to significant pressure on the naira.
The policies were presented by the administration as necessary measures to address fiscal pressures, reduce government expenditure and reform the economy.
However, the resulting increases in fuel prices, transportation costs, food prices and other living expenses have remained major sources of public concern.
As the 2027 election approaches, the economic consequences of the reforms are increasingly becoming a major political talking point, while opposition groups seek to consolidate their structures and challenge the ruling All Progressives Congress.
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