Tinubu Defends Subsidy Removal, Vows Transparency on Savings as NUPENG Raises Alarm Over Casualisation

 President Bola Ahmed Tinubu on Thursday defended his administration’s decision to remove fuel subsidy, insisting that the policy was already delivering tangible benefits to Nigerians through improved funding for salaries,…

Sulaiman Umar August 14, 2026  ·  12:00 AM
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Tinubu Defends Subsidy Removal, Vows Transparency on Savings as NUPENG Raises Alarm Over Casualisation
Tinubu Defends Subsidy Removal, Vows Transparency on Savings as NUPENG Raises Alarm Over Casualisation

 President Bola Ahmed Tinubu on Thursday defended his administration’s decision to remove fuel subsidy, insisting that the policy was already delivering tangible benefits to Nigerians through improved funding for salaries, critical infrastructure projects and other government obligations.

The President also disclosed that the Federal Government would soon begin publishing details of how savings from the subsidy removal are being spent, in a move aimed at addressing growing public concerns over the management of the funds.

Tinubu made the remarks while receiving the newly elected leadership of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), led by its President, Comrade Akanni Oladiti, at the Presidential Villa, Abuja.

Responding to criticisms that the subsidy removal had worsened the economic situation for ordinary Nigerians, the President argued that the policy had enabled governments at all levels to meet financial obligations more consistently while freeing up resources for long-delayed development projects.

According to him, the benefits of the decision are evident in the regular payment of salaries to workers across local, state and federal government levels, as well as the renewed pace of infrastructure development across the country.

Tinubu cited ongoing reconstruction and expansion works on major highways, including the Lagos-Ibadan Expressway, Abuja-Kaduna Road, Abuja-Kano Highway and the Sokoto-Badagry Super Highway, as projects being funded through resources previously tied down by fuel subsidies.

He maintained that the subsidy regime had become unsustainable and that redirecting the funds toward development was necessary for the country's long-term economic growth and public safety.

The President further assured Nigerians that the Federal Government would provide greater transparency on the utilisation of subsidy savings, stressing that citizens deserve to know how public resources are being deployed.

On the state of Nigeria’s refineries, Tinubu expressed confidence that the nation’s four moribund refining facilities would eventually return to operation, but insisted that profitability and efficiency must take precedence over merely restarting production.

He said the administration was carrying out comprehensive structural reforms to ensure that the refineries operate on a commercially viable basis capable of delivering value to Nigerians.

The President noted that his government had inherited both the assets and liabilities of previous administrations and accepted responsibility for fixing the challenges surrounding the country's refining sector.

Beyond the refinery reforms, Tinubu urged petroleum transport operators to ensure that the benefits of the Federal Government’s Compressed Natural Gas (CNG) programme reach ordinary commuters.

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He observed that while many truck owners and operators were already enjoying lower operating costs through CNG adoption, the gains had yet to significantly reflect in transportation costs for the public.

The President appealed to NUPENG to encourage its members to pass on some of the savings to consumers in order to broaden the impact of the initiative.

Earlier, NUPENG President Akanni Oladiti commended the Tinubu administration for ongoing road rehabilitation projects across the country but expressed concern over what he described as the growing casualisation of workers in the oil and gas industry.

According to him, the practice remains widespread, particularly among operators in the upstream petroleum sector, despite repeated engagements by labour unions and government agencies.

Oladiti said NUPENG and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had exercised restraint due to the strategic nature of the industry and the potential economic consequences of industrial actions.

He, however, appealed to President Tinubu to intervene and end the practice, arguing that workers in one of Nigeria’s most critical economic sectors deserve stable employment conditions and improved welfare.

The labour leader also praised the administration’s investment in road infrastructure, noting that improved highways have reduced risks for petroleum tanker drivers and enhanced the movement of petroleum products across the country.

He specifically highlighted the ongoing Lagos Coastal Highway and Sokoto-Badagry Super Highway projects, describing them as transformative investments with far-reaching economic benefits.

In addition, Oladiti welcomed efforts to revive the Port Harcourt and Warri refineries through partnerships with foreign investors, but urged the Federal Government to extend similar attention to the deteriorating facilities of the Nigerian Pipelines and Storage Company (NPSC).

He suggested that the depots could be concessioned to private investors under an equity arrangement to restore efficiency and support the broader objective of revitalising the nation’s petroleum infrastructure.

The NUPENG president further called on the Federal Government to strengthen grassroots governance by ensuring that state governments comply with the Supreme Court judgment granting financial autonomy to local government councils, arguing that direct access to funds would accelerate development at the community level.

Written by

Sulaiman Umar

Sulaiman Umar is an editor and reporter with extensive experience in economic journalism, analyzing financial and agricultural developments in Northern Nigeria.

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