President Bola Tinubu has reaffirmed that he has no regrets about the removal of the petrol subsidy in May 2023, stressing that Nigeria could no longer act as a “Father Christmas” to neighbouring countries.

“I have absolutely no regrets about removing the petrol subsidy. We were squandering our future and deceiving ourselves. That reform was long overdue,” the former Lagos State governor told journalists on Monday during a media chat at his Bourdillon residence in Ikoyi, Lagos.

Tinubu highlighted that the subsidy removal, introduced 18 months ago, has spurred increased competition within the sector, leading to a gradual reduction in petrol pump prices. “The market is becoming saturated. There is no longer any monopoly or oligopoly. It’s a free-market economy now,” he remarked.

The All Progressives Congress (APC) leader also expressed his opposition to price control policies. “I do not believe in price controls. Instead, we will focus on working hard to ensure a steady supply to the market,” he added.

Nigeria, the most populous nation in Africa, continues to grapple with significant energy challenges, with all state-owned refineries remaining non-operational. As a result, the country relies heavily on imported refined petroleum products, primarily supplied by the state-run Nigerian National Petroleum Corporation (NNPC).

The removal of the subsidy has had far-reaching effects on the economy. Fuel prices skyrocketed from around ₦200 per litre to over ₦1,000 per litre, exacerbating the struggles of citizens who rely on petrol to power vehicles and generators amidst chronic electricity shortages.

Additionally, the government’s decision to unify foreign exchange windows caused the naira’s value to plunge from ₦700 to over ₦1,600 per dollar on the parallel market. This currency devaluation led to surging prices for food and essential commodities, leaving Nigerians to contend with worsening inflation.