Nigeria introduced a new discount on fuel, reigniting fierce debate over the wisdom of terminating a long-running subsidy program three years ago. The move comes ahead of January’s presidential election, with high energy prices among the key campaign issues.
Finance Minister Taiwo Oyedele announced a 30-day discount on petrol sold at government-owned pump stations, insisting that it was not a subsidy. But that framing, which was widely rejected by analysts, has opened a window of criticism for President Bola Tinubu’s top challengers.
Tinubu ended the subsidy following years of recommendations by the IMF and other economists that the program, whose $10 billion cost in 2022 exceeded the combined budgets for health and education, was wasteful and corrupt. But its removal raised fuel prices sharply, pressure that was exacerbated by the Iran war curtailing energy supplies.
