The Presidency has defended the Federal Government’s decision to remove fuel subsidies, saying the growing number of infrastructure and development projects in Imo State demonstrates that savings from the policy are being redirected into public investments with long-term economic benefits.
The position was presented by Tunde Rahman, Senior Special Assistant to President Bola Tinubu on Media and Special Duties, who spoke in his role as Director of Media and Publicity for the Renewed Hope Ambassadors during the group’s media tour of Federal Government projects in Owerri, the Imo State capital.
Rahman said the projects inspected during the tour illustrated how increased fiscal resources generated by the subsidy removal were enabling both the Federal Government and state governments to expand investment in critical sectors, while highlighting the importance of collaboration between the two tiers of government.
“The projects we have inspected demonstrate the value of alignment between the Federal Government and the states in driving sustainable development,” Rahman said.
Infrastructure and Education Highlighted
Among the projects visited were the upgraded Alvan Ikoku Federal University of Education and facilities at the Federal University Teaching Hospital, Owerri.
Rahman said the projects reflected the Tinubu administration’s commitment to strengthening education and healthcare infrastructure under its Renewed Hope Agenda.
He also commended Imo State Governor Hope Uzodimma for complementing Federal Government initiatives through state-backed infrastructure projects.
“Governor Hope Uzodimma has implemented projects that support the Federal Government’s development objectives in line with the Renewed Hope Agenda,” he said.
Rahman further highlighted intervention projects funded by the Tertiary Education Trust Fund (TETFund), as well as the growing number of students from Imo State and the South-East benefiting from the Nigerian Education Loan Fund (NELFUND), describing them as evidence of the administration’s efforts to improve access to higher education.
Presidency Links Subsidy Savings to Development
According to Rahman, the removal of fuel subsidies was a strategic economic reform designed to free fiscal resources for investments in infrastructure, education, healthcare and other public services.
He argued that state governments participating in the Renewed Hope Ambassador Media Tour had reported improvements in project implementation following increased allocations resulting from the policy.
“The removal of fuel subsidy was a carefully considered decision. Governors in the states we have visited have confirmed that increased funding has enabled them to execute more development projects. Where the full benefits are yet to be realised, they will become more evident over time,” Rahman said.
Broader Economic Reform
The Tinubu administration ended Nigeria’s decades-long fuel subsidy regime shortly after taking office in May 2023, describing the policy as fiscally unsustainable and a major drain on public finances.
The government has maintained that savings from the subsidy removal are being redirected toward infrastructure, social investment programmes, education, healthcare and other development priorities.
While the reform has been widely praised by international financial institutions as a step toward improving Nigeria’s fiscal sustainability, it has also contributed to higher fuel prices and increased living costs, prompting calls from labour unions and civil society groups for stronger social protection measures.
The Presidency maintains that the long-term economic benefits of the policy will become increasingly visible as infrastructure projects and public investments continue to expand across the country.
