A media adviser to ex-Benue State Governor, Dr Terver Akase, has appealed to the Federal Government to ensure that funds saved from the removal of fuel subsidy are used to improve the living conditions of Nigerians rather than being absorbed by state governments without visible benefits to the people.
Akase said that the removal of subsidy by the federal government has increased revenue accruing to state governments while worsening economic hardship for ordinary Nigerians.
He made the call on Monday in Makurdi while speaking on national economic reforms, stressing that the removal of fuel subsidy would only be meaningful if Nigerians felt its impact through improved infrastructure, social services and economic opportunities.
Akase explained that fuel subsidy removal, announced by President Bola Ahmed Tinubu on May 29, 2023, ended government payment of part of the cost of petrol, allowing pump prices to reflect market realities influenced by global oil prices, exchange rates and distribution costs.
He noted that while the policy has shifted the financial burden of fuel costs to citizens, it has significantly boosted allocations to states from the Federation Account, with some states reportedly receiving up to eight times what they earned before subsidy removal.
According to Akase, the immediate effect of the policy on Nigerians included sharp increases in transport fares, food prices and the cost of basic services, forcing many households to cut spending on meals, healthcare and education.
He said that although higher revenue to states was intended to promote development at the grassroots, there was little evidence that the additional funds had translated into improved public services, affordable transport, better healthcare or meaningful support for small businesses.
Akase also cited comments by Imo State Governor, Hope Uzodimma, who described subsidy removal as a “direct blessing” to sub-national governments due to increased revenue inflows, while observing that many governors have focused on large-scale projects rather than interventions that directly ease citizens’ hardship.
He added that President Tinubu had recently urged governors to ensure that the benefits of increased allocations are felt at the grassroots, an indication that the impact of the policy on citizens remains largely unaddressed.
While commending the President for ending fuel subsidy payments, Akase appealed to the Federal Government to ensure that funds saved from the policy are used to improve the living conditions of Nigerians rather than being absorbed by state governments without visible benefits to the people.
