Former Minister of Finance, Kemi Adeosun, has said that successive federal cabinets were fully aware that the fuel subsidy regime was severely harming Nigeria’s economy.

Adeosun explained that the subsidy system placed an unsustainable burden on public finances, distorted economic planning, and limited government’s capacity to invest in critical sectors such as infrastructure, education, and healthcare. According to her, despite this shared understanding within government, political sensitivities and public pressure made decisive action difficult for many administrations.

She noted that fuel subsidy payments encouraged inefficiency, corruption, and cross-border smuggling, while benefiting a small segment of the population at the expense of the wider economy. Adeosun added that resources spent on subsidies could have been more effectively deployed to social welfare programmes and long-term development initiatives.

The former minister described the eventual removal of fuel subsidy as a difficult but necessary decision to restore fiscal sustainability and reposition the economy for growth.

Her comments have reignited public debate on subsidy removal and broader economic reforms, as Nigerians continue to grapple with the short-term effects of the policy while the government maintains that its long-term benefits will outweigh the costs.