ADC Questions Subsidy Savings as Petrol Prices Surge Nearly 500% Under President Bola Tinubu

Nigeria’s economic reform agenda has come under renewed scrutiny after the African Democratic Congress (ADC) questioned how funds saved from the removal of fuel subsidy are being utilised. The party says petrol prices have increased by nearly 500 percent since President Bola Tinubu assumed office in May 2023.

In a statement issued on Sunday, the ADC’s national publicity secretary, Bolaji Abdullahi, responded to criticism from the ruling All Progressives Congress (APC), which had accused the opposition party of inciting Nigerians through comments on the administration’s economic reforms. Abdullahi said the ADC was merely drawing attention to publicly available data that, in its view, reflect the economic realities facing many Nigerians.

The debate comes amid ongoing discussions about the impact of subsidy removal and broader economic reforms, particularly as citizens grapple with rising living costs and inflation.

Rising Living Costs and Poverty Concerns by ADC

According to ADC, petrol prices have risen from about ₦255 per litre before the subsidy removal to roughly ₦1,500 per litre in many parts of the country. He argued that the increase has had a ripple effect across the economy, particularly in transportation and food prices, which directly affect household spending.

The ADC spokesperson cited survey data indicating that Nigeria’s poverty rate has increased to around 63 percent, compared with roughly 50 percent before the subsidy removal. He described the figures as evidence of the social cost associated with the government’s economic reforms, claiming that millions of Nigerians have slipped deeper into poverty.

The ADC also referred to public opinion surveys suggesting widespread dissatisfaction with the country’s economic direction. According to the data cited by the party, 93 percent of Nigerians believe the country is heading in the wrong direction, while 88 percent reportedly describe the national economy as “bad”. Additionally, 74 percent say their personal living conditions are “poor”, highlighting the depth of concern among citizens.

He added that a significant proportion of Nigerians have experienced shortages of essential needs over the past year, including food, medical care, cooking fuel, and clean water. Abdullahi maintained that such findings reflect the lived experiences of ordinary citizens rather than political rhetoric.

Questions Over Subsidy Savings and Agricultural Challenges

The ADC also questioned how the reported ₦6.4 trillion savings from the removal of fuel subsidy are being spent. Abdullahi asked whether the funds are being effectively redirected to critical sectors such as infrastructure, education, and economic development.

He said many Nigerians are asking why local contractors remain unpaid and why universities continue to struggle with inadequate funding if such significant savings have indeed been realised. According to him, the government must provide clearer explanations on how the funds are being allocated and utilised.

Beyond fuel pricing, the opposition party raised concerns about developments in the agricultural sector. Abdullahi cited reports suggesting that nearly 90 rice mills across Nigeria have shut down, while many others are operating below capacity. He linked the trend to rising production costs and broader economic pressures affecting the sector.

Data from the National Bureau of Statistics were also referenced, indicating that Nigeria’s food import bill increased significantly. The ADC said the figure rose from ₦3.83 trillion in 2023 to about ₦7.65 trillion, a development the party argues undermines efforts to strengthen domestic food production.

Abdullahi concluded that economic reforms should ultimately be judged by their impact on citizens’ welfare, arguing that policy outcomes must translate into tangible improvements in living standards.