“We will not return to ruinous fuel subsidy regime” — FG declares

Nigeria’s economy recorded 4.43 per cent growth in the second quarter of 2026, with the Federal Government using the latest figures to defend the economic reforms introduced by President Bola Tinubu.

Minister of Information and National Orientation, Mohammed Idris, disclosed the figure during the 66th Independence Anniversary Lecture in Abuja.

Idris said domestic refining capacity was also increasing, while investments were returning to key areas of the economy.

He acknowledged that the reforms implemented over the past three years had placed demands on Nigerians, describing them as measures that required sacrifice and patience.

Akume rejects calls for policy reversal

Speaking at the same event, Secretary to the Government of the Federation, Senator George Akume, made it clear that the administration does not intend to restore the former petrol subsidy arrangement.

“We will not return to the ruinous petroleum subsidy regime of the past,” he said.

According to Akume, the government had to take difficult measures when it assumed office in 2023 because of the economic situation it inherited.

Among the decisions he identified were the removal of petrol subsidy, the unification of the foreign-exchange market and changes to the country’s tax and fiscal framework.

“These were difficult decisions, but necessary to rebuild stability and we have started enjoying the results,” he said.

Akume cited World Bank data showing that real GDP increased from 3.9 per cent in the first half of 2025 to 4.2 per cent in the first half of 2026.

He said the government’s immediate challenge was now to ensure that economic expansion improves employment opportunities and household earnings.

Government pushes gas as alternative to petrol

Beyond the subsidy issue, the SGF pointed to the government’s CNG programme as part of its strategy to reduce transportation costs.

More than 120,000 vehicles, he said, had been converted to compressed natural gas, while the country now has over 400 conversion centres and 90 fuelling stations.

“This shift is cutting fuel costs for motorists and commuters. CNG buses now carry millions of passengers at fares far below those of petrol buses,” he said.

FG lists projects across key sectors

Akume also highlighted interventions in electricity, transportation and housing.

He said the power sector was receiving attention through the clearance of legacy debts, additional investment, improvements in transmission and changes to billing.

In the transport sector, he listed the Lagos–Calabar Coastal Highway, Abuja-Kano Highway, East-West Road, railway modernisation and port reforms among projects expected to improve movement of goods and support economic activity.

The government, he added, was expanding mortgage financing as part of efforts to stimulate housing and employment.

$500m World Bank facility for agriculture

The SGF disclosed that the World Bank had approved $500 million in credit for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) project.

The programme is expected to support smallholder farmers, improve agricultural value chains and strengthen food and nutrition security.

“This initiative will raise smallholder productivity, strengthen value chains, and improve food and nutrition security,” he said.

Youth, healthcare and security

Akume said the government was also focusing on Nigeria’s young population, noting that more than 60 per cent of Nigerians are under 25.

He said the Education Loan Fund had been expanded to help more students access university and vocational education, while technical and vocational institutions were being strengthened to provide industry-relevant skills.

“Our young people are not just leaders of tomorrow – they are partners in building Nigeria today,” he said.

He also urged Nigerians in the diaspora to invest in the country, stressing that their contribution could include ideas and investments in addition to remittances.

On healthcare, Akume said thousands of primary healthcare centres were being equipped, while social protection programmes were being expanded to support vulnerable families.

He said security agencies were also receiving improved equipment and intelligence support, with a National Threat Assessment and a five-year Strategic Defence Plan forming part of the government’s security strategy.

“Nothing matters more than the safety of our people. When communities have opportunities and trust in justice, crime and violence decline. In that sense, development and security go hand in hand,” he said.

Idris urges fact-based political discourse

As Nigeria moves towards another electoral cycle, Idris called for public discussions to be based on facts, verification and national unity.

He said political disagreements were an accepted part of democracy but should not undermine Nigerians’ shared national identity.

“Political differences are legitimate in a democracy; they must never diminish our common identity as Nigerians,” he said.