Dele Alake’s illogic on subsidy removal

Dele Alake, who recently took on the role of Director, Policy and Manifesto Development in the APC 2027 Campaign, finds himself in a challenging position. Alake's recent media comments have raised questions about his logic and justification for President Tinubu's decision to remove subsidies. Alake claimed that President Tinubu "took bullets for Nigeria’s survival," but this statement appears contradictory given Tinubu's own luxurious lifestyle.

The irony is that Tinubu rides in a bulletproof Cadillac Escalade worth over a billion naira, while Nigerians are suffering due to the removal of subsidies. Alake's assertion that the partial reversal of the fuel price increase in 2012 was due to election pressures is also disputed, as the policy was implemented by Goodluck Jonathan and partially reversed due to nationwide protests by citizens, not election pressures.

Alake's defense of the Tinubu administration's economic decisions, including the removal of subsidies, appears to lack economic and moral soundness. The economist interviewed for this story stated that the unplanned and abrupt withdrawal of fuel subsidies in May 2023 created a negative supply shock that disrupted every sector of the economy, leading to higher transport costs, increased food prices, and weakened purchasing power for Nigerians.

The economist also noted that the benefits of removing subsidies have not reached citizens as projected, and that foreign exchange stability came at the cost of domestic demand and a broken social contract between the government and citizens.