Fuel subsidy reversal will jeopardise development, APC group warns

An All Progressives Congress (APC) group, PBAT Mandate Elders Forum, says the reintroduction of fuel subsidy will undermine infrastructure development and economic reforms across the country.
 

Chief Demola Ijabiyi, State Chairman of the group, said this on Wednesday in Akure during the quarterly meeting of the forum.
 
Ijabiyi said the removal of fuel subsidy freed up resources for governments at all levels to embark on critical infrastructure projects, stressing that reversing the policy would reduce available funds and stall ongoing development.
 
According to him, the major road projects linking Ondo State with neighbouring states are currently under construction as a result of increased government revenue following the subsidy removal.
 
“Bring back the subsidy and there will be paucity of funds. Many of these projects will suffer, and we do not want that. Nigeria has also witnessed improvements in fuel availability since the subsidy was removed.
 
“We are no longer experiencing endless queues at filling stations, black-market activities are gone, and labour-related disruptions over fuel scarcity and inabilities to pay workers’ salaries have ended.
 
“Fluctuations in petrol prices were largely driven by developments in the international oil market rather than domestic policies.
 
“Geo-political tensions affecting global crude oil supply routes has continued to influence oil prices worldwide.
 
“The price of crude oil has an international dimension that is beyond Nigeria’s control. Global events determine the direction of prices.
 
“Before the subsidy was removed, a significant volume of subsidised petrol was smuggled across Nigeria’s borders, resulting in the country indirectly subsidising fuel consumption in neighbouring countries,” he said.
 
The APC chieftain warned that any attempt to restore subsidy, either directly or indirectly, would impose unsustainable fiscal burden on the nation.
 
According to him, such reversal can eventually return Nigeria to an era where a substantial proportion of government revenue is spent on fuel subsidy.
 
Ijabiyi urged Nigerians to be patient with the ongoing economic reforms, describing the current period as a transition towards long-term prosperity.
 
“There is no free subsidy anywhere. Someone must bear the cost, and we should not return to a system that consumed huge national resources.
 
“We are in a period of transition from economic challenges to prosperity. The reforms require patience, but the long-term gains will outweigh the temporary difficulties.
 
“APC leaders in the state should put aside political differences and unite behind President Bola Tinubu’s re-election in 2027,” he said.
 
The forum chairman also urged state party members to prioritise reconciliation and mobilisation, saying Tinubu needed the support of all stakeholders to secure victory in 2027.
 
Ijabiyi called for restraint in public communication and warned against personal attacks.