Why President Tinubu Needs a Temporary Fuel Subsidy

At a recent media chat, President Tinubu dismissed calls for price controls and focused on tackling the root causes of rising costs. I thought he finally understood basic economics. But his refusal to reintroduce a fuel subsidy amid global supply shocks feels driven by rigid ideology. Across Europe, leaders are capping energy prices, granting direct payments to vulnerable households or cutting taxes to ease the burden. Many of those countries do not produce oil, yet they protect citizens when markets turn volatile. Nigeria, by contrast, is set for record crude revenues. Earmarking a portion of these windfalls for a short-term subsidy would shield motorists and lower living costs. A well-managed subsidy could leverage local refineries and transparent crude-swap arrangements. With the Strait of Hormuz still closed and key facilities offline, the risk of hyperinflation looms large. To safeguard recent gains—stronger GDP growth, naira stability and rising reserves—I believe a temporary fuel subsidy is the right move until this crisis passes.

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