Aug 26, 2026

“Subsidy Is a Tool, Not a Curse” — Amadi Challenges Tinubu’s Reform Narrative

By Afolabi Olaiya Idowu in news

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Abuja, August 26, 2026 — A subsidy is not inherently bad. When properly designed and targeted, it remains a legitimate fiscal tool that governments can deploy to stimulate production, support consumption and strengthen the broader economy, according to policy analyst and ARISE News contributor Dr. Sam Amadi.

Speaking on ARISE News on Wednesday, Amadi offered a nuanced assessment of Nigeria’s fuel subsidy debate as the country heads toward the 2027 elections.

He acknowledged that the subsidy regime as previously implemented had proven inefficient and counterproductive. At the same time, he insisted that the concept itself should not be discarded.

“We have to admit that subsidy, as it has been implemented, has proven not to be good. But subsidy can be good.

We have to admit that subsidy is a fiscal tool which government can use to boost production and consumption, which has a good effect on the economy,” Amadi said.

Timing and Complementary Policies Under Scrutiny

Amadi was particularly critical of the way the subsidy was removed in May 2023 under President Bola Tinubu.

He argued that the decision was not properly sequenced and that simultaneous policy moves—especially the sharp devaluation of the naira and the removal of the electricity subsidy—compounded the hardship felt by households and businesses.

In a related appearance, he went further, judging the overall subsidy removal a failure because it has not delivered measurable improvements in productivity or welfare for the majority of Nigerians.

He suggested that government policy focus has tilted more toward protecting the interests of the rich than lifting the poor.

Political Stakes Ahead of 2027

The remarks come amid renewed political contestation over the subsidy. Former Vice President Atiku Abubakar, the African Democratic Congress presidential candidate, has repeatedly vowed to restore petrol subsidy if elected, framing it as a way to ease the cost-of-living crisis and support domestic production.

Amadi cautioned that the subsidy question alone may not determine who is best placed to manage Nigeria’s economy.

Its political weight, he said, will depend heavily on how it is messaged—whether as a serious instrument for cost control, improved policy and citizen welfare, or merely as a populist slogan.

Fiscal Gains Versus Lived Reality

The Federal Government has pointed to substantial fiscal savings from the reform, estimating that the Federation gained about ₦15.8 trillion between June 2023 and December 2025.

Officials argue the money has supported higher FAAC allocations to states, infrastructure, wage adjustments, and social programmes.

Critics, including Amadi, counter that these gains have not translated into broad-based economic relief.

Petrol prices remain elevated, inflation has eroded purchasing power, and many households continue to struggle with higher transport and living costs three years after the policy shift.

Amadi’s intervention adds a thoughtful voice to a polarized national conversation. He rejects both the idea that subsidy is always wasteful and the claim that its abrupt removal has been an unqualified success.

Instead, he calls for a more careful, evidence-based approach that treats subsidy as one instrument among many—useful when transparent, targeted, and aligned with productive economic goals.

As the 2027 campaign intensifies, the debate is likely to grow louder. For millions of Nigerians still feeling the pinch, the central question remains practical rather than ideological: which policies will actually ease their daily burdens and rebuild confidence in the economy.