President Bola Ahmed Tinubu has said that funds saved from the removal of fuel subsidy are being channelled into critical infrastructure, social safety nets, and targeted economic reforms aimed at rebuilding public trust and promoting inclusive development.
The President stated this at the opening of the National Conference on Public Accounts and Fiscal Governance, organised by the Public Accounts Committees (PACs) of the Senate and House of Representatives on Monday in Abuja.
Tinubu, represented by Minister of State for Finance, Dr. Doris Uzoka-Anite, said the fuel subsidy regime was fiscally reckless and unjust.
He said the removal of the subsidy, though painful, was necessary to free up fiscal space and redirect national resources to sectors that benefit the broader population.
The President said, “In 2022 alone, Nigeria spent over 4 trillion naira on fuel subsidies, more than we allocated to capital expenditure. This was not only physically unsustainable but also unjust. A subsidy that disproportionately benefited the affluent, encouraged smuggling, and bred inefficiency was neither equitable nor strategic.
“Since its removal, we have redirected those funds into targeted interventions, expanding our social safety nets, improving public transportation, and financing critical infrastructure projects. Most importantly, we have strengthened our fiscal buffers, making Nigeria more resilient to external shocks.”
Tinubu described fiscal governance as the lifeblood of national development, stressing that without transparency, accountability, and sound management of public resources, no nation can prosper regardless of its natural wealth.
“For far too long, Nigeria’s economy has been burdened by structural inefficiencies, fiscal leakages, and an overreliance on oil revenues. But we are not here today to dwell on the challenges of the past. We are here to chart a new course,” he said.
Stating other key reforms, the President pointed to the newly assented tax reform laws, which he said will simplify compliance, expand the tax base, digitise collections, and harmonise multiple taxes to ease doing business in Nigeria.
“These reforms are designed to widen the tax base by integrating the informal sector, simplify compliance for small and medium-sized enterprises, digitise revenue collection to reduce human interference and eliminate leakages, and harmonise multiple taxes to make doing business easier in Nigeria,” he said.
Describing the new tax system as a governance imperative, Tinubu noted that Nigeria is laying the foundation for a self-sustaining economy that gradually moves away from dependence on oil revenues to a more diverse and inclusive revenue base.
The President also emphasised economic diversification as a top policy objective, naming agriculture, manufacturing, digital services, renewable energy, mining, and the creative economy as focal sectors receiving targeted investments and reforms.
He referenced new initiatives like the National Credit Guarantee Company, which aims to support local production, empower SMEs, and boost non-oil exports.
On monetary policy, Tinubu acknowledged the Central Bank’s efforts in stabilising the naira, taming inflation, and coordinating effectively with fiscal authorities.
According to him, there is better coordination now between the fiscal and monetary sides, and we are determined to reduce inflationary pressures by addressing structural bottlenecks, particularly in food supply chains.
The President affirmed that transparency and accountability are non-negotiable, citing steps taken to digitise public finance systems through platforms such as the Integrated Payroll and Personnel Information System (IPPIS), the Government Integrated Financial Management Information System (GIFMIS), and the Open Treasury Portal.
Tinubu called on the National Assembly, particularly the Public Accounts Committee, to uphold its constitutional duty with integrity, courage, and independence.
“Oversight is not a political tool. It is a patriotic duty. Every project must be guided by value for money, and every budget must reflect the new priorities of our people,” he said.
Speaking, Senate President Godswill Akpabio urged the Public Accounts Committees (PACs) of the National Assembly to assert their constitutional powers in enforcing transparency and accountability in government, warning against the growing trend of non-compliance with legislative summons.
Represented by Senator Abdul Ningi, Akpabio said that Nigeria’s progress is inseparable from effective fiscal oversight, which is the central mandate of the PACs.
Akpabio lamented the lack of responsiveness by some agencies and individuals to invitations from the legislature, saying it was an affront to democracy and the rule of law.
“Refusal to honour legislative invitations, especially from the PACs, is unacceptable. This trend must be stopped. Heads of agencies, including the Head of Service and others, must recognise the authority vested in the legislature by the 1999 Constitution as amended,” he said.
Speaker of the House of Representatives, Abbas Tajudeen, lamented that over N300 billion in public funds flagged by audit reports remain unrecovered.
The speaker, who was represented by House Leader, Julius Ihonbvere, described the situation as unacceptable and warned that fiscal responsibility cannot thrive where audit queries are routinely ignored without consequence.
The speaker expressed concern that Nigeria’s public finance architecture is often weakened by non-compliance and delayed enforcement of audit recommendations.
To address this, he noted that the House has worked on refining the PAC process to reduce delays in considering Auditor-General reports, while developing a structured follow-up mechanism to track compliance by MDAs.
Chairman of the Senate Public Accounts Committee (SPAC), Senator Ahmed Wadada, called on Nigeria’s public institutions and leadership across sectors to recommit to a new era of fiscal integrity and responsible governance.
He said the era of fiscal recklessness must come to an end.
Chairman of the House of Representatives Public Accounts Committee (PAC), Bamidele Salam, called for a complete recalibration of Nigeria’s fiscal governance systems, urging all public officials to move beyond lip service and ensure that public funds are truly used for the public good.
Salam emphasised that the conference must extend beyond discussions to deliver concrete, measurable outcomes that will positively impact the lives of citizens.
“Making public funds work for public good is a mantra we must not only proclaim but must be seen to internalise and practice in all we do as public servants,” he said.
President of the African Organisation of Public Accounts Committees (AFROPAC), Hon. Medard Lubega Sseggona, commended Nigeria for taking continental leadership in promoting fiscal transparency and sustainable public finance management, declaring that the country now stands as a strategic anchor in Africa’s accountability architecture.
“This forum is a clear demonstration of Nigeria’s commitment to strengthening public financial management and enhancing transparency in championing sustainable development. It speaks directly to the collective challenges we face across the continent in our shared aspirations.”
The Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, affirmed the civil service’s full support for Nigeria’s ongoing fiscal reforms, describing the National Conference on Public Accounts and Fiscal Governance as a critical step toward strengthening accountability and service delivery across government institutions.
