Vice-President Kashim Shettima has opposed proposals to restore petrol subsidy, warning that reversing the economic reforms introduced by President Bola Tinubu could undermine Nigeria’s long-term fiscal stability.
Shettima stated this on Monday while representing Tinubu at the 32nd Nigerian Economic Summit in Abuja, where he criticised a presidential aspirant advocating a return to the subsidy regime.
Speaking at the summit, themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity,” the Vice-President urged Nigerians to scrutinise competing economic proposals and consider their long-term implications for the country.
“One of the leading presidential candidates is advocating a return to the subsidy scheme,” he said.
Although he did not identify the aspirant, Shettima questioned the economic rationale behind the proposal, arguing that difficult policy decisions should not be reversed merely because their immediate consequences were unpopular.
“Nigerians will have to decide,” he said, urging citizens to consider the implications of policies proposed by political leaders.
Defending Tinubu’s decision to remove petrol subsidy in May 2023, the Vice-President said the President inherited an economy facing significant challenges, with foreign reserves standing at $33.9bn.
“Our economy was teetering on the verge of collapse,” Shettima said.
He argued that the former subsidy arrangement had become vulnerable to abuse, alleging that it created a system through which public resources were diverted from more productive uses.
“We have created a subsidy scam, a subsidy industry that we are taking part in at the agony of our people,” he stated.
According to him, Tinubu proceeded with the removal despite the political risks because delaying the decision would have increased the eventual cost of addressing the country’s economic problems.
“But Mr President understood that postponing difficult decisions would multiply the eventual cost. He accepted the burden of acting while others calculated the comfort of delay,” Shettima said.
The Vice-President also argued that Nigeria’s historically low petrol prices encouraged cross-border smuggling, effectively allowing subsidised fuel to flow into neighbouring countries and other African markets.
He maintained that economic policies should be designed to promote national development rather than sustain arrangements that place additional pressure on public finances.
Emphasising the need for policy consistency beyond individual administrations, Shettima said Nigeria’s economic direction should not be determined by political considerations alone.
“Administrations can go and go. I am the 17th Vice-President of Nigeria, and there will be 17 more Vice-Presidents of Nigeria after my lecture. But the Nigerian nation has to be sustained,” he said.
He added, “And that sustainability must be anchored on stable policy frameworks, not on political experience.”
To support his argument for continuing the reforms, Shettima cited economic indicators which he said showed improvements in output and investor confidence.
He disclosed that Nigeria’s real Gross Domestic Product grew by 3.89 per cent in the first quarter of 2026, compared with 3.18 per cent recorded in the corresponding period of 2025.
The Vice-President also said capital importation reached $10.37bn during the quarter, representing an 83.83 per cent year-on-year increase.
He presented the figures as evidence of improving investor confidence, while stressing that the government intended to sustain reforms across key sectors of the economy.
According to him, the administration is pursuing changes in taxation, electricity, agriculture, solid minerals and petroleum production to attract investment, expand economic activity and create employment opportunities.
Shettima further disclosed that crude oil and condensate production reached 1.735 million barrels per day in June 2026.
He, however, stressed the need to strengthen domestic refining, manufacturing and non-oil exports to ensure that economic growth translates into broader benefits for Nigerians.
The Vice-President said the ultimate objective of the government’s economic policies should be to improve living standards, create productive jobs and expand opportunities for citizens.
He called on government officials, private-sector operators and other stakeholders to work together to sustain reforms and establish a stable policy framework capable of supporting Nigeria’s long-term economic development.
