Nigeria is saving over N10 trillion annually following the removal of fuel subsidy by President Bola Tinubu, according to the Chairman of the Senate Committee on Appropriation, Senator Solomon Adeola.

Adeola disclosed this on Saturday while speaking in Ogun State, where he highlighted the fiscal impact of the policy decision taken by the current administration.

The senator explained that the removal of fuel subsidy has significantly reduced fiscal pressure on the country by eliminating what he described as a long-standing drain on public finances.

Adeola, who represents the Ogun West Senatorial District, stated that the fuel subsidy regime largely benefited only a small segment of the population, while the wider Nigerian populace bore the burden of its economic consequences.

“I am a living testimony to what the president has done. Within his two years of assumption of office, he succeeded in removing the cankerworm in our economy that has affected our finances over the years.

“That is, the fuel subsidy; which benefited very few Nigerians at the detriment of the overall population of this nation.

“With that singular action, the president is saving the country over N10 trillion on annual basis.

“I used to be the chairman, senate committee on finance during the last senate, and I know on a yearly basis what we go to the bank to borrow to fund the subsidy is in the region of N6 trillion to N7 trillion,” he said.

Adeola further noted that President Tinubu is working relentlessly to build a secure and prosperous Nigeria that citizens can take pride in, adding that major infrastructural renewal efforts are currently ongoing across the country.

Nigeria officially removed fuel subsidies in May 2023, shortly after President Tinubu’s inauguration, bringing an end to decades of government intervention in petrol pricing.

The policy was introduced to reduce budget deficits, curb financial leakages, and free up funds for infrastructure development and social spending.

However, the removal of fuel subsidy has also led to a sharp increase in fuel prices, higher transportation costs, and rising inflation, which have triggered public debates and criticism from labour unions and civil society organisations.

Despite these challenges, Adeola maintained that the administration is reinvesting the savings from subsidy removal into large-scale infrastructure projects nationwide, which he said would drive long-term economic growth.

He cited major projects such as the Lagos-Calabar Coastal Highway and the Sokoto–Badagry Super Highway, noting that the latter would include about 66 dams upon completion.

“The President is creating a new Nigeria. The Lagos-Calabar expressway will cut across 10 or 15 states, and that is a new Nigeria being born. Also, the Sokoto -Badagry way, a popular road, which we are also a beneficiary. Along that road alone, we have a total of 66 dams when that road is fully completed,” he said.

In 2024, the Presidency disclosed that Nigeria is saving about $7.5 billion annually from funds that were previously allocated to fuel subsidy before its removal.

This disclosure was made by the Special Adviser on Media and Public Communications to President Tinubu, Sunday Dare.

Also in 2024, projections contained in the Accelerated Stabilization and Advancement Plan, ASAP, presented by the Minister of Finance, Wale Edun, indicated that fuel subsidy spending stood at N5.4 trillion, an increase from the N3.6 trillion budgeted for the subsidy in 2023.