The controversy over Nigeria’s petrol subsidy removal has intensified ahead of the 2027 general elections, with the All Progressives Congress (APC) defending President Bola Tinubu’s economic reforms while the African Democratic Congress (ADC) demands greater accountability over the additional resources generated by the policy.

The latest disagreement follows the Federal Government’s disclosure that the removal of petrol subsidy and foreign exchange reforms generated about N15.8 trillion in additional resources for the Federation between June 2023 and December 2025.

According to the Federal Ministry of Finance, the N15.8 trillion did not accrue entirely to the Federal Government. About N5.4 trillion went to the Federal Government, while N6.5 trillion was allocated to states and N3.9 trillion to local governments through the statutory allocation system.

The disclosure has become a major point of political debate as opposition parties question whether the increased government revenues have translated into meaningful improvements in the lives of Nigerians.

The ADC has challenged the Tinubu administration to explain what Nigerians have gained from the additional resources generated since the subsidy was removed.

The party argued that Nigerians have continued to face high food, transportation and energy costs despite the increase in government revenues.

It questioned whether citizens were better off after what it described as years of economic sacrifice and urged the government to provide clearer evidence of how the additional resources had been used.

The APC, however, has strongly defended the reforms and warned against returning to the previous petrol subsidy regime.

APC National Chairman, Nentawe Yilwatda, criticised calls to restore the subsidy, arguing that such a policy could recreate the fiscal pressures that existed before its removal.

Yilwatda said the subsidy might appear attractive because it could reduce the price motorists pay at the pump, but the government would still have to find the money to finance it.

He warned that returning to the old system could affect the government’s ability to finance workers’ salaries, pensions, education, healthcare and infrastructure.

The APC chairman also argued that increased allocations following the reforms had strengthened the finances of many states and improved their ability to meet salary and pension obligations.

The party has therefore maintained that the subsidy removal should be assessed not only by its immediate impact on petrol prices but also by its effect on government finances and the resources available for public services.

The Presidency has similarly defended the reforms, saying they have helped improve Nigeria’s business environment and restore investor confidence.

Government officials have pointed to improvements in foreign exchange management and increased revenue as some of the outcomes of the reforms, while acknowledging that the adjustment has imposed significant hardship on households.

The Finance Ministry recently explained that the N15.8 trillion should not be interpreted as a separate pot of money sitting in the Federation Account under the name “subsidy savings.”

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the savings were reflected through higher revenue collections resulting from the reforms.

The ministry also disclosed that the Federal Government’s N5.4 trillion share of the additional resources formed part of a wider pool of incremental resources used to finance government expenditure.

It said total incremental expenditure between June 2023 and December 2025 stood at N30.64 trillion, with major spending areas including wage adjustments, external debt servicing, strategic infrastructure and electricity subsidies.

The government has argued that the reforms helped Nigeria avoid a deeper fiscal crisis and have contributed to stronger public finances and improved economic stability.

However, the ADC maintains that improved government revenues must ultimately translate into better living conditions for citizens.

The disagreement is expected to remain a major political issue as parties prepare for the 2027 elections, particularly because the cost of living and petrol prices remain sensitive issues for voters.

The subsidy debate has also brought renewed attention to the question of whether Nigeria should maintain the current reform path or introduce measures aimed at reducing the immediate burden on households.

For the APC, reversing the subsidy removal could undermine the fiscal gains achieved over the past three years. For the ADC, the government must provide clearer answers on how the additional resources have been used and why many Nigerians continue to struggle with the cost of living.

The controversy over Nigeria’s petrol subsidy removal has intensified ahead of the 2027 general elections, with the All Progressives Congress (APC) defending President Bola Tinubu’s economic reforms while the African Democratic Congress (ADC) demands greater accountability over the additional resources generated by the policy.

The latest disagreement follows the Federal Government’s disclosure that the removal of petrol subsidy and foreign exchange reforms generated about N15.8 trillion in additional resources for the Federation between June 2023 and December 2025.

According to the Federal Ministry of Finance, the N15.8 trillion did not accrue entirely to the Federal Government. About N5.4 trillion went to the Federal Government, while N6.5 trillion was allocated to states and N3.9 trillion to local governments through the statutory allocation system.

The disclosure has become a major point of political debate as opposition parties question whether the increased government revenues have translated into meaningful improvements in the lives of Nigerians.

The ADC has challenged the Tinubu administration to explain what Nigerians have gained from the additional resources generated since the subsidy was removed.

The party argued that Nigerians have continued to face high food, transportation and energy costs despite the increase in government revenues.

It questioned whether citizens were better off after what it described as years of economic sacrifice and urged the government to provide clearer evidence of how the additional resources had been used.

The APC, however, has strongly defended the reforms and warned against returning to the previous petrol subsidy regime.

APC National Chairman, Nentawe Yilwatda, criticised calls to restore the subsidy, arguing that such a policy could recreate the fiscal pressures that existed before its removal.

Yilwatda said the subsidy might appear attractive because it could reduce the price motorists pay at the pump, but the government would still have to find the money to finance it.

He warned that returning to the old system could affect the government’s ability to finance workers’ salaries, pensions, education, healthcare and infrastructure.

The APC chairman also argued that increased allocations following the reforms had strengthened the finances of many states and improved their ability to meet salary and pension obligations.

The party has therefore maintained that the subsidy removal should be assessed not only by its immediate impact on petrol prices but also by its effect on government finances and the resources available for public services.

The Presidency has similarly defended the reforms, saying they have helped improve Nigeria’s business environment and restore investor confidence.

Government officials have pointed to improvements in foreign exchange management and increased revenue as some of the outcomes of the reforms, while acknowledging that the adjustment has imposed significant hardship on households.

The Finance Ministry recently explained that the N15.8 trillion should not be interpreted as a separate pot of money sitting in the Federation Account under the name “subsidy savings.”

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the savings were reflected through higher revenue collections resulting from the reforms.

The ministry also disclosed that the Federal Government’s N5.4 trillion share of the additional resources formed part of a wider pool of incremental resources used to finance government expenditure.

It said total incremental expenditure between June 2023 and December 2025 stood at N30.64 trillion, with major spending areas including wage adjustments, external debt servicing, strategic infrastructure and electricity subsidies.

The government has argued that the reforms helped Nigeria avoid a deeper fiscal crisis and have contributed to stronger public finances and improved economic stability.

However, the ADC maintains that improved government revenues must ultimately translate into better living conditions for citizens.

The disagreement is expected to remain a major political issue as parties prepare for the 2027 elections, particularly because the cost of living and petrol prices remain sensitive issues for voters.

The subsidy debate has also brought renewed attention to the question of whether Nigeria should maintain the current reform path or introduce measures aimed at reducing the immediate burden on households.

For the APC, reversing the subsidy removal could undermine the fiscal gains achieved over the past three years. For the ADC, the government must provide clearer answers on how the additional resources have been used and why many Nigerians continue to struggle with the cost of living.

The growing political dispute therefore reflects a wider debate over the balance between economic reform and citizens’ welfare, with both sides expected to make the issue a major part of their campaigns ahead of the 2027 presidential election.The growing political dispute therefore reflects a wider debate over the balance between economic reform and citizens’ welfare, with both sides expected to make the issue a major part of their campaigns ahead of the 2027 presidential election.