ABIODUN SAYS GOVERNORS MUST EXPLAIN HOW SUBSIDY GAINS ARE BEING SPENT

Ogun State Governor, Dapo Abiodun, has said state governors, rather than President Bola Tinubu, should be the ones to explain how the financial gains from the removal of petrol subsidy have been spent. Abiodun made the statement on Thursday during an All Progressives Congress rally at the Dipo Dina International Stadium in Ijebu-Ode, Ogun State, amid growing political arguments over the billions of naira that have become available to the three tiers of government since the subsidy was removed in 2023.

According to Abiodun, the removal of the subsidy resulted in increased allocations to state governments through the Federation Account, making governors better placed to account for how the additional revenue has been used. Speaking in Yoruba, the Ogun governor questioned why President Tinubu was being asked to explain the use of the subsidy gains when state governments were also direct beneficiaries of the increased allocations. He argued that governors should instead be questioned about how the additional money received by their respective states has been deployed for development.

Abiodun said the increased revenue had helped state governments finance various projects and programmes, including road construction, schools, housing and support for farmers. He argued that these projects were among the areas where the additional funds made available after the subsidy removal had been deployed. However, the governor did not provide a detailed breakdown of how much Ogun State had received specifically as a result of the policy or how much of the additional revenue had been spent on each of the projects he mentioned.

The governor’s comments came as the debate over the impact and management of subsidy removal gains continues to intensify ahead of the 2027 general elections. Former Vice-President and African Democratic Congress presidential candidate, Atiku Abubakar, has repeatedly criticised the Tinubu administration over what he described as a failure to adequately account for the savings generated by the policy. Atiku has also promised to restore the petrol subsidy if elected, while Tinubu has rejected the proposal and argued that returning to the old subsidy system would undermine the financial gains of the reforms. Finance Minister Taiwo Oyedele said in August that subsidy removal had mobilised N15.8tn for the federation between June 2023 and December 2025.

Abiodun also used the APC rally to express confidence that the ruling party would defeat opposition parties in the 2027 elections, dismissing the chances of its political rivals. The governor’s comments are likely to add to the ongoing debate over who should be held responsible for the management of the additional revenues generated since the subsidy was removed. While the Federal Government introduced the policy, the resulting increase in Federation Account allocations has benefited federal, state and local governments, leaving governors under growing pressure to explain how the additional resources have translated into better infrastructure, public services and improved living conditions for Nigerians.