Shettima faults subsidy return proposal, defends Tinubu’s reforms

Vice President Kashim Shettima has criticized proposals to restore Nigeria's petrol subsidy, arguing that President Bola Tinubu's economic reforms should not be reversed. Shettima, who accompanied Tinubu at the 32nd Nigerian Economic Summit in Abuja, questioned the economic judgment of a leading presidential aspirant advocating the return of the subsidy.

Speaking at the summit themed "Growth that Works: Delivering Jobs, Productivity and Shared Prosperity," the Vice President stated that Nigeria required consistent economic policies rather than politically attractive promises that might undermine fiscal stability. He accused the unnamed aspirant of promoting the proposal for political convenience and questioned their ability to manage a modern economy.

Shettima emphasized that abandoning difficult reforms simply because of their unpopular immediate consequences was not viable. He defended Tinubu's decision to remove the petrol subsidy in May 2023, citing the economy's severe difficulties at the time, including foreign reserves of $33.9 billion. The Vice President argued that the previous subsidy arrangement had fostered abuses and diverted public resources away from productive economic activities.

He acknowledged the political risks associated with removing the subsidy but stated that postponing the decision would exacerbate the country's economic problems. Shettima also compared Nigeria's petrol prices with those of neighboring countries, pointing out that historically cheap Nigerian petrol had encouraged cross-border smuggling and turned the nation into a supplier of subsidised fuel to other African countries.

He called for informed economic decisions and policies that would endure changes in political leadership. Shettima highlighted that Nigeria's real Gross Domestic Product grew by 3.89% in the first quarter of 2026, a 0.71% increase from the same period in 2025. The administration is pursuing reforms in taxation, electricity, agriculture, solid minerals, and petroleum production to attract investment and boost employment.

He stressed that sustainable economic growth should ultimately benefit Nigerians, leading to improved livelihoods, productive employment, and greater opportunities.