Fuel Subsidy Removal Saved Nigeria From Economic Crisis — Shettima

Vice President Kashim Shettima has defended the economic reforms introduced by President Bola Tinubu’s administration, saying the removal of fuel subsidy was a necessary decision that helped stabilise Nigeria’s economy and restore investor confidence.

Speaking as the special guest of honour at the Nasarawa Economic Summit 2026, Shettima said the country’s financial condition at the time the administration assumed office made urgent economic reforms unavoidable.

According to him, Nigeria’s foreign reserves were dangerously low and could not sustain fuel imports for even one month, making the continuation of subsidy payments unsustainable.

The Vice President revealed that the decision to remove fuel subsidy was not originally included in President Bola Tinubu’s inauguration speech on May 29, 2023, but was made spontaneously during the address.

“Shettima explained that the President deliberately kept the decision close to his chest, knowing that delaying it could make implementation impossible later,” the report noted.

He added that despite the difficult impact of the policy, Nigeria’s economy has started showing signs of recovery, citing improvements in foreign reserves, the capital market, and investor confidence.

According to Shettima, Nigeria’s gross external reserves rose above $46 billion in 2025, while investments in the stock market have significantly appreciated over the past year.

Using banking stocks as examples, he pointed to the sharp increase in the share prices of major Nigerian banks, saying the market response reflects growing confidence in the economy.

The Vice President stated that investors are beginning to see Nigeria as a country willing to take tough but necessary decisions to correct economic imbalances and create long-term stability.

His remarks come amid renewed criticism over the removal of fuel subsidy and rising living costs across the country.

President Tinubu, while speaking to foreign investors in Paris, France, also maintained that the subsidy removal had contributed to greater foreign exchange stability and reduced pressure on government finances.

Similarly, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently reiterated that the Federal Government would not return to the subsidy regime.

Oyedele argued that subsidies distort the economy and insisted that petrol pricing should remain market-driven rather than controlled by the government.

The administration says its broader reform agenda is aimed at stabilising the economy, improving fiscal discipline, and creating sustainable long-term growth.