The National Institute for Policy and Strategic Studies (NIPPS) has described President Bola Tinubu’s removal of fuel subsidy as a “timely” decision, urging Nigerians to endure the immediate economic hardship for long-term benefits.
NIPPS Director-General Ayo Omotayo acknowledged the spike in fuel prices and its impact on citizens but argued that the policy shift was necessary to save Nigeria from fiscal collapse.
“Most of the benefits will be in the medium and long term,” Omotayo said. “In the short term, the government has tried to put out palliatives so that those suffering from the effect of fuel subsidy can adjust. We all need to make adjustments to our spending.”
He emphasized that while the immediate gains appear minimal, the sacrifices will pay off eventually. “In the long run, we will make up for whatever sacrifices we have made today as Nigerians,” he added.
The subsidy removal, announced during Tinubu’s May 29 inauguration, triggered nationwide backlash over rising living costs. Omotayo defended the move, stating Nigeria was subsidizing fuel for neighboring countries like Burkina Faso and Sierra Leone due to smuggling.
“We were on the verge of collapse with subsidies,” he said. “A government that wants to succeed must take tough decisions. We commend the President for this bold step, even though many Nigerians feel it’s harsh.”
Tinubu has introduced temporary measures, including a minimum wage hike, subsidized public transport, and expanded social welfare programs, to cushion the impact.
“Reform may be painful, but it is what greatness and the future require,” the President said recently. “We must endure if we are to reach the good side of our future.”
NIPPS, Nigeria’s apex policy institute, trains senior government officials and advises on national development strategies. Its endorsement adds institutional weight to the controversial policy amid ongoing public discontent.
