The Senate Majority Leader Opeyemi Bamidele, has expressed strong support for President Bola Tinubu’s decision to remove the petrol subsidy, stating that the key beneficiaries of the subsidy were among those who made governance difficult for the president in the first 18 months of his administration.
In a statement issued on Monday, the senator representing Ekiti Central explained that while the move was in the public interest, those who had profited from the fuel subsidy fought against the president’s administration. He emphasized that the real beneficiaries of the subsidy were not ordinary Nigerians but rather a select group who had direct access to the funds, creating a distorted picture of who the subsidy was actually benefiting.
Bamidele further clarified that the decision to remove the fuel subsidy was not one initiated by President Tinubu alone but had already been approved by the 9th National Assembly prior to his inauguration. He stated, “The president did the right thing by removing the fuel subsidy, which the 9th National Assembly had already made provision for until May 2023.”
He continued, “It was not the common people who were benefiting from the subsidy. It was members of the cabal who had access to it. They portrayed it as something benefiting the masses, but the reality was far from that. The masses were not the true beneficiaries.”
The senator, who was part of the 9th National Assembly, emphasized that the subsidy was no longer sustainable, noting that its removal was part of a broader agreement between the executive and legislative arms. “In the 2023 budget, the National Assembly only made provision for fuel subsidy until May 2023,” he explained. “Even if President Tinubu had not announced it, the subsidy would have been phased out immediately after his inauguration because there was no funding for it beyond that point.”
Bamidele also pointed out that had the fuel subsidy been retained, it would have led to serious fiscal consequences. “If we had kept the subsidy, it would have automatically led to a fiscal crisis and possibly another economic meltdown,” he warned. Instead, he said, the proceeds that were previously used for the subsidy are now being allocated directly to sub-national governments to support their development and bolster the domestic economy.
Highlighting the broader economic strategy, Bamidele emphasized that the government’s approach, though challenging, is designed to address long-term issues. “Running an economy requires strategic responses. The steps being taken are not meant to yield results within 24 hours, but they are crucial for the future. If the subsidy had not been removed, our economy would have been in shambles,” he said.
Bamidele also noted that despite the short duration of the administration’s tenure, significant progress has been made in various sectors, and reforms are ongoing to further strengthen the economy. “This administration has not been in office for up to two years, and so much has been achieved. Diverse reforms are ongoing to deepen the gains,” he added.
The Senate Majority Leader further assured Nigerians that the 2025 appropriation act would address the country’s challenges at both the national and sub-national levels. He pointed out that the federal government’s spending priorities are shifting toward capital expenditure, with less focus on recurrent spending. “Compared to previous fiscal years, the federal government is spending less on consumables, which marks a significant change in our fiscal policy,” he concluded.
