Showunmi Defends Tinubu’s Subsidy Removal, Says Nigeria Was On The Brink Of Financial Collapse
By Abdulrahman Dan-Umar, Katsina
The Founder and Convener of the Alternative Politics Movement, Otunba Segun Showunmi, has defended President Bola Ahmed Tinubu’s decision to remove petrol subsidy, insisting that Nigeria was on the verge of financial collapse before the current administration assumed office in May 2023.
Speaking with journalists shortly after a press briefing on Tuesday at the Nigeria Union of Journalists (NUJ) Secretariat in Katsina, where his movement endorsed the re-election of President Tinubu and Katsina State Governor Malam Dikko Umaru Radda, Showunmi argued that the subsidy regime had become an unsustainable burden on the nation’s economy.
According to him, although the fuel subsidy policy was introduced in the 1970s to stimulate industrial growth, improve citizens’ welfare and strengthen the economy, successive administrations failed to achieve those objectives despite spending enormous public resources.
Showunmi maintained that by the time President Tinubu took office on May 29, 2023, Nigeria’s finances had deteriorated to a critical level, adding that the budget inherited by the administration made no provision for the continuation of petrol subsidy beyond inauguration day.
He said previous governments recognised the need to end the subsidy but lacked the political will to implement the decision because of the anticipated public backlash.
The political figure recalled the attempt by former President Goodluck Jonathan to remove the subsidy, noting that widespread resistance ultimately stalled the reform.
Questioning the impact of decades of subsidy payments, Showunmi asked why periods of high crude oil prices failed to translate into improved infrastructure, better public services, enhanced workers’ welfare and stronger national development.
He further alleged that the subsidy regime encouraged the smuggling of petroleum products into neighbouring countries, including Cameroon and the Republic of Benin, while creating opportunities for fraudulent import claims, inflated subsidy payments and widespread abuse of public funds.
According to him, Nigeria’s economic challenges were compounded by years of fiscal mismanagement, leaving the country with inadequate resources to finance critical infrastructure, procure military equipment and meet other essential obligations.
He also recalled periods when several state governments struggled to pay workers’ salaries and pensions, forcing the Federal Government to provide repeated financial bailouts.
Using a household analogy, Showunmi argued that a family living on continuous borrowing could not sustain prosperity indefinitely, saying Nigeria similarly relied on debt and anticipated oil revenues to finance current expenditure.
Defending the Tinubu administration’s economic reforms, he said the measures were intended to address longstanding structural weaknesses, improve public finance management and lay the foundation for sustainable economic growth.
He claimed that the country’s fiscal position had improved under the current administration through increased government savings and greater availability of resources for development programmes.
Showunmi also criticised the previous foreign exchange management system, arguing that restrictions on access to foreign currency weakened investor confidence and hindered economic growth.
While acknowledging that the reforms had imposed significant hardship on Nigerians, he insisted that they were necessary to avert a deeper economic crisis and restore long-term stability.
He pointed to the introduction of compressed natural gas (CNG) buses and vehicle conversion programmes as part of the Federal Government’s efforts to reduce dependence on petrol and diversify transportation energy sources.
According to him, Nigeria must fully harness its abundant natural gas resources to provide more affordable and sustainable alternatives for transportation.
Showunmi warned that reversing the current reforms without addressing the structural problems that necessitated them would only return the country to the economic challenges associated with the former subsidy regime.
He therefore urged Nigerians to be patient with the Tinubu administration, stressing that structural economic reforms require time before their full benefits become evident.
The Alternative Politics Movement convener also challenged politicians proposing alternative economic policies to clearly explain how such programmes would be funded without placing additional pressure on the nation’s finances.
He further appealed to Nigerians, particularly those in the North-West, to support President Tinubu’s re-election in 2027, arguing that continuity in governance would enable the administration to consolidate its ongoing reforms.
Showunmi also called on journalists to provide balanced and factual coverage of government policies and development initiatives, saying the media has a crucial responsibility to keep citizens informed about key national economic decisions.
