Key Points
- PBAT Mandate Elders Forum says fuel subsidy reversal would reduce funds for infrastructure.
- The group says subsidy removal has increased government revenue and improved fuel availability.
- It urged Nigerians to remain patient with the economic reforms.
Main Story
The PBAT Mandate Elders Forum, an All Progressives Congress (APC) group, has warned that any attempt to reintroduce fuel subsidy could reduce government revenue and stall infrastructure development across Nigeria.
Chief Demola Ijabiyi, State Chairman of the forum, gave the warning on Wednesday in Akure during its quarterly meeting.
Ijabiyi said the removal of fuel subsidy had freed additional resources for governments at all levels to finance critical infrastructure projects.
He cited major road projects linking Ondo State with neighbouring states as examples of infrastructure development he attributed to 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,” he said.
Ijabiyi also said fuel availability had improved since the removal of the subsidy, arguing that Nigeria was no longer experiencing prolonged queues at filling stations.
He said black-market activities and labour-related disruptions associated with fuel scarcity and difficulties in paying workers’ salaries had also reduced.
According to him, fluctuations in petrol prices were largely influenced by developments in the international oil market rather than domestic policies.
“The price of crude oil has an international dimension that is beyond Nigeria’s control. Global events determine the direction of prices,” he said.
Ijabiyi said geopolitical tensions affecting global crude oil supply routes had continued to influence oil prices internationally.
He also recalled that subsidised petrol had previously been smuggled across Nigeria’s borders, resulting in the country indirectly subsidising fuel consumption in neighbouring countries.
The forum chairman warned that restoring subsidy, whether directly or indirectly, could create an unsustainable fiscal burden and return the country to a situation where a substantial share of government revenue was used to fund petrol subsidies.
The Issues
The forum’s argument centres on the fiscal implications of reversing the fuel subsidy policy.
Ijabiyi said reduced government revenue following a return to subsidy could affect funding for infrastructure projects and other government responsibilities.
He also linked the subsidy debate to fuel availability, cross-border smuggling and the volatility of international crude oil prices.
What’s Being Said
“There is no free subsidy anywhere. Someone must bear the cost, and we should not return to a system that consumed huge national resources.” – Chief Demola Ijabiyi, State Chairman, PBAT Mandate Elders Forum
“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.” – Chief Demola Ijabiyi, State Chairman, PBAT Mandate Elders Forum
What’s Next
Ijabiyi urged Nigerians to remain patient with the ongoing economic reforms, which he described as a transition towards long-term prosperity.
He also called on APC leaders in Ondo State to set aside political differences and unite behind President Bola Tinubu’s re-election bid in 2027.
The forum chairman urged party members to prioritise reconciliation and mobilisation and called for restraint in public communication, warning against personal attacks.
Bottom Line
The PBAT Mandate Elders Forum says restoring fuel subsidy would place additional pressure on government finances and could undermine infrastructure projects and other gains it attributes to the subsidy removal policy.
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