Fuel Subsidy Removal May Drive More Borrowing Without Strong Institutions

I believe removing subsidies without putting measures in place to cushion the effects can deepen inflation and force the government into heavier borrowing. In my view, the Tinubu administration removed the fuel subsidy before strengthening the institutions needed to manage the economic fallout. Running government without subsidies may remain costly if democratic institutions and public-sector accountability are weak. The concerns around the Made-in-Nigeria Project Office under the Office of the Secretary to the Government of the Federation also raise questions about institutional oversight. If the current approach continues, Nigeria could face an unsustainable debt burden and reduced access to loans from international lenders.

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