Subsidy Withdrawal: Alake Says Cartels, Not Nigerians, Benefited from Old Regime
Dele Alake has defended Tinubu's reforms, arguing that previous subsidy policies favoured powerful interests while difficult decisions were repeatedly delayed.
…Minister slams critics, says Tinubu took political risks predecessors avoided
The Minister of Solid Minerals Development, Dele Alake, has robustly defended President Bola Ahmed Tinubu’s economic reforms, saying powerful interests—rather than ordinary Nigerians—were the true beneficiaries of the previous fuel subsidy regime.
Speaking at an interactive session with journalists in Abuja on Wednesday, Alake accused entrenched “subsidy cartels” and their allies of resisting reforms aimed at resetting Nigeria’s economy. He also criticised sections of the media for, at times unwittingly, amplifying the agenda of those seeking a return to the old order.
Cartels, Not Nigerians, Benefited Most
Contrary to popular belief, Alake argued, the fuel subsidy primarily enriched a privileged minority—wealthy individuals, oil marketers, and organised cartels—rather than the masses. “There’s this erroneous belief that all Nigerians benefited from the subsidy. It’s a lie,” he stated. “When you break it down, you find that the upper crust of society benefited more. One family could own five or 10 vehicles, all subsidised, while the average Nigerian had one or none. So, who truly benefited?”
He explained that the removal of subsidies disrupted lucrative schemes involving arbitrage and cross-border smuggling, where subsidised fuel was diverted and sold at higher prices outside Nigeria. “Did you think those who benefited from the subsidy would simply accept its removal? No. They will fight back, and the media, sometimes unknowingly, helps to amplify their pushback,” he said.
Alake urged journalists to go beyond surface reporting, encouraging them to scrutinise claims and provide context, rather than merely repeating statements. “Your responsibility is to help the public make informed judgments, not just echo narratives,” he said.
The minister noted that while successive governments recognised the need to remove subsidies, they shied away from tough decisions due to political considerations. “The policies needed to correct economic distortions were clear to previous governments, but what was lacking was the courage to act,” Alake said.
He praised President Tinubu for making what he described as a politically risky but necessary choice. “If a politician chooses to take tough decisions despite the impact on his popularity or career, fairness demands we give credit where it’s due,” Alake insisted.
Alake warned that Nigeria was at risk of a deeper economic crisis if the subsidy regime had continued. By the time Tinubu took office in May 2023, he claimed, budgetary provisions for subsidies were nearly exhausted. “If that decision hadn’t been taken, within months, our money would have become almost worthless,” the minister said.
He argued that there would never have been a “convenient” time to end subsidies, likening the process to stopping digging when you’re in a hole.
Addressing criticism over the slow trickle-down of reform benefits, Alake likened economic restructuring to childbirth, with pain preceding eventual gains. “There is nothing good that comes without some pain. But after the pain, the benefits start to manifest,” he said. He cited the Nigerian Education Loan Fund (NELFUND) as an example of policy already relieving families of tuition burdens.
Alake drew comparisons between Tinubu’s reforms as Lagos State governor and his current policies at the federal level. He recalled how Tinubu tackled payroll leakages and ghost workers, leading to significant savings despite fierce resistance. “The same principle is being applied nationwide today. What Nigeria needs now is consistency—not another reset,” he said.
Alake dismissed media controversy over the composition of the APC Presidential Campaign Council for 2027, calling it an internal party matter. “It is not the composition of the campaign council that determines policies affecting Nigerians,” he said, urging the media to focus on parties’ manifestos and governance records instead.
The minister welcomed legitimate criticism but called for it to be fact-based and constructive. “Criticise where necessary, but do so constructively,” he said, warning that reversing current reforms would return Nigeria to economic uncertainty and the fiscal distortions of the past.
He concluded that the real test for Nigeria lies not in whether the reforms are painful, but in the nation’s ability to maintain the courage and consistency needed to see them through.
