Politics
Subsidy removal: Beyond Tinubu, Kyari’s personal interests
Subsidy removal: Beyond Tinubu, Kyari’s personal interests
By Mohammed Usman
Sahara Weekly Reports That One of the major highlights of the new administration of President Bola Ahmed Tinubu has been the suspension of the payment of subsidy for premium motor spirit, PMS, commonly called petrol.
Though there have been so many reforms introduced into the system since inauguration on May 29, 2023, the removal of fuel subsidies seemed to have been the most daring move ever made by any administration.
Come to think of it, as critical as fuel subsidy removal is to the turnaround of the economy, successive governments have made brick walls in their attempts to end the subsidy regime.
And, ever since that May 29th, 2023 pronouncement, a lot of dusts has been raised from different quarters, either from uninformed, or from the camp of those who benefited, albeit criminally or otherwise, while the subsidy regime held sway. And a lot of water has passed under the bridge too, including threats of strike.
However, it is pertinent to dig deep into this matter. Was removing the oil subsidy the right step in the right direction, or was it another government’s way to punish the masses?
Some say it is a wicked act by the president, Bola Ahmed Tinubu, aimed at impoverishing the masses further. Others say it is the handiwork of the group chief executive officer, GCEO, of the Nigerian National Petroleum Corporation, Mallam Mele Kolo Kyari. In this regard, the two top government functionaries have been the objects of attacks and accusations both in beer parlour discussions and in the press.
However, to the informed, this remains the most courageous move to place the country of the strongest path to its economic recovery.
The concept of fuel subsidy is not new to our national discourse. In fact, subsidy has been in place in Nigeria since the promulgation of the Price Control Act in 1977. It was put in place to cushion the effects of the global inflation of the 1970s.
In recent years, rather than being a blessing, subsidy payments have placed a huge economic burden on the government. The sectors that were affected negatively were the educational and health and housing sectors.
In justifying the subsidy removal, the government said subsidy removal would free up public funds for more meaningful infrastructure and developmental programs that stimulate industrialization, create jobs, economic growth and social prosperity.
For example: Almost N12 trillion spent on subsidy in the last four years is more than sufficient to develop any of the following projects: 2,400, hospitals of 1000 bed capacity across 774 local government areas; or 500,000 new houses to provide shelter to over 3.5 million Nigerians; or 27GW of electricity generation; or skill up and provide education up to tertiary levels for over 2 million Nigerians.
It also said it would create a market reflective downstream, which invariably stimulates more downstream investments, especially in the domestic refining space, thereby creating more jobs, prosperity, and growth.
The removal, according to the government would eliminate the unhealthy price arbitrage with neighboring countries thereby preventing the diversion and smuggling of gasoline outside the nation’s borders which bleeds our economy as well as reduce corruption surrounding internal product diversion as many marketers procure gasoline at subsidized regulated wholesale prices but still sell at deregulated retail prices.
It stated that the rich benefit more from the subsidy than the poor as they have higher number and capacity of vehicles to buy more gasoline; removal of the subsidy creates an opportunity to redistribute this benefit directly to those who need it more.
Subsidy removal also enables responsible gasoline consumption, which reduces waste as the prices are more market reflective, and the demand for the product will rebalance itself with the new price realities.
It equally allows the full recovery of upstream revenues, which enables reinvestment required to grow our national petroleum production and reserves and overall forex earnings.
The removal also would strengthen the naira as the growth of our foreign exchange earnings combined with reduction in product consumption reduces pressure on forex, thereby strengthening the naira.
It would also reduce product scarcity, opening market reflective prices to bring in more players, and create a more efficient market, thereby reducing fuel scarcity and its adverse effects on the economy.
The removal is also expected to reduce the growing and unsustainable budget deficit and, consequently, the debt burden, creating a more robust economic and sustainable future.
Successive governments had sunk trillions of naira into the subsidy payments. In 2006, the Obasanjo regime earmarked N1.9 trillion for these payments. Do not forget that at the period under review, naira exchanged at N130 to a dollar, making the amount $14.6 billion. This amount was to spike in 2007 when the same government spent N2.3trn, or $17.96bn, with naira exchanging for N128 to a dollar.
The above amount either tripled or quadrupled under the Yaradua/Jonathan administration as well as the Buhari administration. Now that the dollar is hovering around N800 in the exchange rate, one wonders what would be the fate of the economy in the next six months had the subsidy stayed.
Probably, this would have been the basis of the constant warning from international agencies of the dangers of accommodating this burden called subsidy. Prior to the removal of the subsidy, there were damning reports from the International Monetary Fund, IMF, and the World Bank concerning oil subsidy.
In its report titled, “Macro Poverty Outlook for Nigeria: April 2023” the World Bank said macroeconomic stability had weakened amidst declining oil production, costly fuel subsidies and other factors, further pushing millions of Nigeria into poverty, and that might become worse if the subsidy stayed up to June on 2023.
The report further said: “With Nigeria’s population growth continuing to outpace poverty reduction and persistent high inflation ratio, the number of Nigerians living below the national poverty line will rise by 13 million between 2019 and 2025 in the baseline projection.”
The bottom line is that in the last two decades, the fuel subsidy had cost the nation several trillions of naira. Even if it is narrowed down to between 2005 and now, the government spent approximately N21 trillion on subsidy payments alone.
The last regime of President Muhammadu Buhari, having realized the dangers ahead, stopped making provisions for the payment in June 2023 when his government would have expired. It was, therefore, incumbent on the incoming administration to pick up the gauntlet and do the needful.
From the onset of the existence of the subsidy, a certain set of individuals had smiled to the bank with each payment. It turned out that something that was done to assuage the suffering of the masses became an avenue for people with greedy and unscrupulous oil marketing companies to divert money into their pockets by sheer unconscionable criminality,
Speaking in a nationwide broadcast last Monday, President Tinubu reiterated on the benefit of the subsidy removal to Nigerians. He said in a little over two months, his government had over a trillion naira “that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters That money will now be used more directly and more beneficial for you and your families.
“For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure outlived its usefulness.
“The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing, and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.
“To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.
“The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.”
However, notwithstanding the president’s speech, the organized labour ordered workers to resume strike on Wednesday after talks with the government failed to yield positive results.
This is in spite of palliatives proposed by the federal government to ameliorate the perceived suffering the fuel subsidy removal would throw up.
This raises the question as to what the Nigerian labour is up to. Is labour truly yearning for the progress of Nigeria, or is it being sponsored by enemies of Nigeria?
At this critical period of our nation, we urge Nigerians to come together to support the good vision of the president to make the nation great, because from all indications, both the president Bola Ahmed Tinubu and Mallam Mele Kyari, the NNPC GCEO mean well for Nigeria.
Usman, a public commentator, wrote in from FCT, Abuja.
Politics
Pro-Tinubu Group Demands Sack of Badaru, Other Ministers Who Lost Polling Units in Bye-Elections
Pro-Tinubu Group Demands Sack of Badaru, Other Ministers Who Lost Polling Units in Bye-Elections
The Asiwaju Network has called on President Bola Ahmed Tinubu to immediately disengage underperforming ministers who failed to deliver their polling units and wards during the just-concluded bye-elections.
The group also urged a cabinet reshuffle to inject fresh energy and ensure that only those who can add political and governance value remain in the Federal Executive Council.
In a statement issued on Monday in Abuja and signed by its president, Alhaji Musa Ibrahim Dandoka, the Asiwaju Network said the results of the elections were a litmus test that exposed the political weaknesses of some ministers entrusted with strategic national assignments.
At Babura Kofar Arewa Primary School in Jigawa State, where the Minister of Defence, Alhaji Muhammad Badaru Abubakar, cast his vote, the Peoples Democratic Party (PDP) scored 308 votes to defeat the All Progressives Congress (APC), which managed only 112.
Badaru, a former governor of Jigawa and APC chieftain, left the venue without addressing journalists after casting his vote amid heavy security presence.
Dandoka said it was troubling that, despite his high office, the Defence Minister could not secure victory in his polling unit.
He argued that such political setbacks undermine the strength of the APC and the credibility of President Tinubu’s Renewed Hope government.
“This defeat is both embarrassing and unacceptable. A minister who cannot win his polling unit cannot claim to possess the political capital required to defend the APC or promote the President’s Renewed Hope Agenda. President Tinubu must act quickly to weed out weak links in his cabinet and replace them with men and women who have proven grassroots capacity,” Dandoka stated.
The group noted that Badaru was not alone in this failure, stressing that another minister from Jigawa and one from Enugu State also lost their wards and polling units.
According to the group, these developments point to a worrying trend of disconnect between certain ministers and their political bases.
“Ministers are not merely technocrats. They are political leaders of the party in their states and zones. If they cannot hold their homes together, then they do not deserve to hold on to strategic national offices. The bye-elections have sent a clear message, and it is that some ministers have lost relevance and electoral value,” the statement reads.
The Asiwaju Network maintained that the APC’s strength lies in grassroots mobilisation, and any minister unable to inspire loyalty within his immediate constituency is a liability.
Dandoka emphasised that President Tinubu’s success in governance must be matched with political consolidation, which requires capable and electorally grounded cabinet members.
“President Tinubu has been bold with tough decisions on subsidy reforms, the economy, and security. Nigerians are beginning to see the fruits of those reforms. But he must also be bold enough to reshuffle his cabinet. A government of results cannot afford ministers who are passengers. The President needs proven drivers of the Renewed Hope vision,” Dandoka said.
The group also commended loyal APC members and supporters who defied intimidation and attempts at rigging in Jigawa and Enugu, saying their resilience was the true strength of the ruling party.
“These members stood firm when those at the top failed to inspire confidence. They turned out in their numbers to defend the APC’s relevance even when some of their supposed leaders abandoned them. These grassroots soldiers of democracy must never be taken for granted,” Dandoka added.
The Asiwaju Network further urged President Tinubu to take the bye-election results as a warning, cautioning that retaining non-performing ministers would embolden the opposition and demoralise party loyalists.
“The message from Jigawa and Enugu is clear: the APC cannot continue to reward failure. A minister who cannot secure a few streets in his ward has no business in the Federal Executive Council. Mr President must urgently rejig his cabinet or risk carrying dead weight into future electoral contests,” the coalition warned.
Reaffirming the group’s loyalty to Tinubu’s leadership, Dandoka said Nigerians expect a government that rewards competence and accountability, not excuses and political failures.
“President Tinubu has the people’s mandate. He must not allow weak ministers to drag down his vision. A decisive cabinet reshuffle now will send a strong signal that the Renewed Hope government is serious about performance, delivery, and results,” he declared.
Customs at the Crossroads: When Lawmakers Look Away and the Executive Looks Aside
By Dr. Bolaji O. Akinyemi
In a democracy, legislative oversight is the scalpel that cuts through deceit, inefficiency, and corruption in public institutions. It is the people’s last institutional shield against abuse of power. But what happens when that shield becomes a shelter for the very rot it is meant to expose? And what happens when the Executive arm, whose duty is to supervise its agencies, pretends not to see?
The unfolding drama between the National Assembly and the Nigeria Customs Service (NCS) reveals more than a policy dispute. It exposes a dangerous triangle of confusion, complicity, and economic sabotage. At stake is not only the rule of law but the survival of an economy already gasping under inflation, a weak naira, and suffocating costs of living.
The House Talks Tough
In June 2025, Nigerians saw a glimpse of legislative courage when the House of Representatives Committee thundered at Customs:
> “Nigerian Customs Service, by June 30, must not collect CISS again. You are to collect only your 4% FOB assigned by the President. Even the 7% cost of collection you currently take is illegal—it was an executive fiat of the military, not democratic law. Any attempt to continue these illegal collections will be challenged in court. The ‘I’s have it.”
The voice was firm, the ruling decisive. Nigerians expected a turning point.
But the righteous thunder of the House was quickly muffled by the Senate’s softer tone, which suggested not the enforcement of the law but a readiness to bend it.
Senate: Oversight or Escape Route?
At a Senate Customs Committee session, Senator Ade Fadahunsi admitted openly that Customs has been operating illegally since June 2023. Yet rather than demand an end to illegality, he extended a lifeline to Comptroller-General Bashir Adeniyi:
> “If we come back to the same source… the two houses will sit together and see to your amendment so you will not be walking on a tight rope.”
But should Adeniyi be handed a loose rope while Nigeria’s economy hangs by a thread?
Instead of accountability, the Senate Customs Committee floated adjustments that would make life easier for Customs. The nation was given hints about fraudulent insurance and freight data, but instead of sanctions, what we saw was a search for escape routes. This is not oversight—it is overlook.
Smuggling and Excuses
The Senate Committee also lamented cross-border smuggling—Nigerian goods like cement flooding Cotonou, Togo, and Ghana at cheaper prices than in Nigeria. Senator Fadahunsi blamed the Central Bank’s 2% value deposit for encouraging the practice.
But where are the Senate’s enforcement actions—compliance checks, stiffer sanctions, cross-border coordination? None. The result is predictable: smugglers prosper, reserves bleed, and ordinary Nigerians pay more for less.
A Bloated Customs Budget
The Service’s 2024 capital allocation ballooned to ₦1.1 trillion from ₦706 billion. Instead of channeling these resources into modern trade systems, Customs is expanding empires of frivolity—such as proposing a new university despite already having training facilities in Gwagwalada and Ikeja that could easily be upgraded.
Oversight is not an afterthought; it is the legislature’s constitutional duty. To see waste and illegality and yet propose amendments that would legalise them is to turn oversight into overlook.
Customs has about 16,000 staff, yet many remain poorly trained. Rather than prioritise capacity building, the Service is busy building staff estates in odd locations. How does Modakeke—an inland town with no border post—end up with massive Customs housing projects, while strategic border towns like Badagry, Idiroko, and Saki remain neglected? Is Bashir Adeniyi Comptroller-General of Customs—or Minister of Housing?
The 4% FOB Levy: A Policy Blunder
The central controversy is the Federal Government’s plan to replace existing port charges with a new 4% Free-On-Board (FOB) levy on imports.
Nigeria is an import-dependent nation. This levy will instantly hike the costs of cars, spare parts, machinery, and raw materials—crippling industries and punishing consumers.
Already, the consequences are biting:
A 2006 Toyota Corolla now costs between ₦6–9 million.
Clearing agents who once paid ₦215,000 for license renewal must now cough out ₦4 million.
New freight forwarder licenses have jumped from ₦600,000 to ₦10 million.
Customs claims the revenue is needed for its modernisation programme, anchored on a software platform called B’Odogwu. But stakeholders describe this so-called “Odogwu” as epileptic—if not comatose. Why commit trillions to a ghost programme that will be obsolete by January 2026, when the Nigerian Revenue Service is set to take over Customs collections?
Industry Raises the Alarm
The Manufacturers Association of Nigeria (MAN) has warned that the levy will worsen inflation, disrupt supply chains, and hurt productivity.
Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents, calls the levy “economically dangerous.” His reasoning is straightforward:
The 4% FOB levy is much higher than the 1% CISS it replaces.
Peer countries like Ghana maintain just 1%.
The new levy will fuel inflation, raise the landed costs of goods, and destabilise the naira.
He also revealed that the Customs Modernisation Act, which introduced the levy, was passed without Senate scrutiny or meaningful stakeholder consultation. He estimates that the levy could add ₦3–4 trillion annually to freight costs—burdens that will be transferred directly to consumers.
Who Is Behind the “Odogwu” Masquerade?
The haste to enforce this levy, despite its looming redundancy, raises disturbing questions. Who benefits from the “Odogwu” project draining trillions? Why the rush, when NRS will take over collections in a few months?
This masquerade must be unmasked.
The Price Nigerians Pay
For ordinary Nigerians, this policy translates into one thing: higher prices. Cars, manufactured goods, and spare parts are spiraling beyond reach. A nation struggling with inflation, unemployment, and a weak currency cannot afford such reckless experiments.
So, while the Senate looks away, the Executive cannot look aside.
The Executive Cannot Escape Blame.
It is easy to focus on the failings of the legislature. But we must not forget: the Customs Service is an agency of the Federal Ministry of Finance, under the direct supervision of the Honourable Minister of Finance, Mr. Wale Edun.
If Customs is breaking the law, wasting resources, or implementing anti-people policies, the buck stops at the Executive’s table. The Minister of Finance is Chairman of the Customs Board. To fold his hands while the Service operates in illegality is to abdicate responsibility.
History gives us a model. In 1999, the Minister of State for Finance, Nenadi Usman, was specifically assigned to supervise Customs and report directly to the President. Meanwhile, Ngozi Okonjo-Iweala focused on broader fiscal and economic policies. That division of responsibility improved accountability. Today, the absence of such an arrangement is feeding impunity.
President Tinubu and his Finance Minister must act decisively. Oversight without executive will is a dead letter.
A Call to Accountability
The truth is stark:
Customs has been operating illegally since June 2023 to the Senate’s own confession.
The 4% FOB levy will deepen inflation and worsen economic hardship.
The Ministry of Finance bears ultimate responsibility for Customs’ conduct.
Until importing and consuming, Nigerians demand accountability—of the Comptroller-General, the Senate, and above all, the Finance Ministry—this bleeding will continue.
Nigerians deserve better. They deserve a Customs Service that serves the nation, not a privileged few. They deserve a House that enforces its resolutions, not one that grandstands. They deserve a Senate that upholds the law, not one that bends it. And above all, they deserve an Executive that does not look aside while illegality thrives under its ministry.
Only public pressure can end this indulgence. If Nigerians keep silent, we will keep paying the price—in higher costs, weaker currency, and a sabotaged economy.
Citizens’ Charge: Silence is Not an Option
Fellow Nigerians, the Customs crisis is not a drama for the pages of newspapers—it is a burden on our pockets, our businesses, and our children’s future. Every illegal levy is a tax on the poor. Every abandoned oversight is an open invitation to corruption. Every silence from the Executive is an approval of impunity.
We cannot afford to fold our arms. Democracy gives us the power of voice, the duty of vigilance, and the right to demand accountability. Let us demand that:
The Senate and House of Representatives stop playing good cop, bad cop, and enforce the law without compromise.
The Ministry of Finance takes full responsibility for the Customs Service, supervising it in the interest of Nigerians, not vested interests.
The President intervenes now, before the Service crosses the dangerous line of turning illegality into policy.
History will not forgive a people who suffered in silence when their economy was bled by recklessness. Silence is complicity. The time to speak, to write, to petition, to protest, and to demand is now.
Customs must serve Nigeria—not sabotage it.
Dr. Bolaji O. Akinyemi is an Apostle and Nation Builder. He’s also the President of Voice of His Word Ministries and Convener Apostolic Round Table. BoT Chairman, Project Victory Call Initiative, AKA PVC Naija. He is a strategic Communicator and the CEO, Masterbuilder Communications.
Email:[email protected]
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Aare Adetola Emmanuel King Congratulates Hon. Adesola Ayoola-Elegbeji on Election Victory
The Chairman/CEO of Adron Group, Sir Aare Adetola Emmanuel King KOF, has congratulated Hon. Adesola Ayoola-Elegbeji on her resounding victory in the just-concluded by-election for the Remo Federal Constituency seat in the House of Representatives.
In a goodwill message issued by him, he described the victory as “a historic moment for the Remo people, coming at a time when the constituency yearns for a leader with vision, courage, and genuine commitment to service.”
He noted that the outcome of the election was an attestation to the trust and confidence reposed in Hon. Ayoola-Elegbeji by the people, adding that her sterling qualities, integrity, accessibility, and compassion for the grassroots had endeared her to the electorate.
“The overwhelming support you garnered at the polls is proof that you are the right voice at the right time to carry the aspirations of Remo to the national stage,” he stated.
While acknowledging that the by-election followed the painful demise of the late Hon. Adewunmi Oriyomi Onanuga (Ijaya), Aare Adetola Emmanuel King said Hon. Ayoola-Elegbeji’s emergence symbolizes the continuity of purposeful representation. He expressed confidence that she would not only sustain the legacy of her predecessor but also surpass it with new energy, innovative ideas, and progressive leadership.
The Adron Group Chairman further prayed for divine wisdom, strength, and compassion for the Member-Elect as she assumes office, expressing confidence that her tenure will usher in meaningful development, economic empowerment, and greater opportunities for the people of Remo Federal Constituency.
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