The removal of Nigeria’s petrol subsidy has become a major political issue ahead of the 2027 general election, with the government highlighting fiscal gains while many households continue to struggle with rising living costs.
Three years after the policy was introduced, petrol prices have increased sharply, putting pressure on transportation, food, housing and other essential expenses. Although salaries have risen in some cases, many Nigerians say their incomes have failed to keep pace with the higher cost of living.
The reform has, however, generated significant savings for the government. Finance Minister Taiwo Oyedele said the removal of the subsidy produced about ₦15.8 trillion in fiscal gains between June 2023 and December 2025.
Economists remain divided over how the policy should be assessed. Some argue that eliminating the subsidy was necessary to reduce pressure on government finances and create resources for infrastructure and other investments. Others maintain that the government has not delivered enough of the promised benefits to citizens who have borne the immediate cost of the reform.
The rollout of compressed natural gas (CNG) as a cheaper alternative to petrol has also faced challenges. Although more than 120,000 vehicle conversions have reportedly been completed through hundreds of certified centres, the figures remain below the government’s original targets.
The impact of the subsidy removal has increasingly become part of political debate, with opposition figures proposing different approaches to reduce fuel costs and support households. Some have called for targeted assistance to domestic refiners, while others have criticised the government for failing to adequately channel the savings from the reform into measures that improve citizens’ welfare.
The ruling administration continues to defend the subsidy removal as a difficult but necessary economic decision, arguing that the old system placed an unsustainable burden on public finances.
As the 2027 election approaches, the central debate is increasingly shifting from whether subsidy removal was necessary to whether Nigerians have received enough tangible benefits in return for the economic hardship that followed the policy.
