Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations, has said President Bola Ahmed Tinubu’s decision to remove fuel subsidy is saving Nigeria about ₦10 trillion annually.

Adeola stated this during a New Year thanksgiving programme, noting that the subsidy regime had become unsustainable and a major drain on public finances. According to him, the federal government previously borrowed between ₦6 trillion and ₦7 trillion yearly to sustain fuel subsidy payments, pushing the total fiscal burden to nearly ₦10 trillion each year.

He explained that the removal of the subsidy has helped stabilise government finances and freed up resources for critical sectors such as infrastructure, social services, and debt servicing.

The senator described the policy as a difficult but necessary reform, stressing that Nigeria’s economy was “bleeding” under the old subsidy system. He added that the Tinubu administration’s economic reforms are aimed at putting the country on a more sustainable fiscal path despite the short-term hardships faced by citizens.

Adeola urged Nigerians to be patient, assuring that the long-term benefits of the reforms would outweigh the initial challenges.