President Bola Tinubu says the petrol subsidy regime is over.
He spoke on Monday during his inaugural speech as president.
“On fuel subsidy, unfortunately, the budget before I assumed office is that no provision is there for fuel subsidy. So fuel subsidy is gone,” he said.
Nigeria’s new president added that “we commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor”.
“Subsidy can no longer justify its ever-increasing costs in the wake of drying resources,” he said.
“We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”
Babatunde Fashola, former minister of works and housing, had earlier disclosed that the outgone Muhammadu Buhari administration didn’t make provisions for petrol subsidy in the year’s budget beyond June.
Subsidy on petrol has long been a contentious issue in Nigeria.
Previous attempts to end the petrol subsidy regime sparked protests on the streets and strike action from organised labour.
The Nigeria Labour Congress (NLC) had warned against the removal of subsidy on petrol, citing galloping inflation and the hardship Nigerians are currently grappling with.
The NLC called for a repair of the nation’s moribund refineries and tackling corruption in the petroleum sector before calling time on the petrol subsidy regime.