BY CHIKA OKEKE, Abuja
The Minister of Works, Engr David Umahi has jettisoned the call for fuel subsidy reversal, describing the move as satanic, providing the Federal Government's economic rationale for ending the subsidy in May 2023.
He stated this on Wednesday in Abuja, while receiving the National Association of Nigerian Students, NANS, alongside the National Association of Colleges of Education Students, NACES, who presented their findings following a comprehensive multi-state project inspection tour across the North-West geopolitical zone.
As an independent social oversight body, the students conducted an extensive inspection tour of ongoing Federal Government Road and infrastructure projects across the North-West geopolitical zone.
Traversing Kano, Kaduna, Jigawa, Sokoto, Katsina, and Kebbi States, the students physically evaluated project execution, engineering standards, campus connectivity, and safety implications for tertiary institution communities.
However, on May, 29, 2023, President Bola Ahmed Tinubu ruled out the payment of subsidy on Premium Motor Spirit, PMS, from third quarter of 2023, arguing that based on the budget he inherited from the past administration of late President Muhammadu Buhari, subsidy was supposed to end by June, 2023.
Before 2023, the Nigerian National Petroleum Company Limited ,NNPCL, deducted subsidy payments directly at the source, leaving minimal revenue to share among the three tiers of government at Federation Account Allocation Committee, FAAC, meetings.
But as at 2023, Nigeria spent more than $850 million monthly on fuel subsidies as revealed by the NNPCL.
Umahi hinted that ending deductions led to increased monthly FAAC distributions, as State governments now receive larger statutory allocations, enabling them to service debt, execute local capital projects, and pay updated national minimum wage structures without relying on central bank bailouts.
"When people debate fuel subsidy removal and ask, 'Where is the money?', I think we are not explaining the situation properly.
“If you recall, between 2015 and 2016, NNPC brought zero kobo to the Federation Account for extended periods because federally generated oil revenue was entirely consumed by petrol subsidies and landing costs. In fact, the Federal Government had to borrow money just to sustain those subsidy payments.
“Now people ask where the subsidy savings are going. Two fundamental things happened when President Bola Ahmed Tinubu ended the fuel subsidy. Firstly, oil revenues now flow directly into the FAAC.
“Secondly, in previous years, allocations dropped so low that state governors could barely pay basic civil service salaries without taking bailout loans. Today, state and local governments receive significantly higher monthly allocations from FAAC.
“Because of this fiscal policy, state governors no longer need to borrow money to pay salaries. They now have substantial statutory funding to meet payroll obligations, clear pensions, and fund major state infrastructure projects,” Umahi said.
He praised President Bola Tinubu for embarking on a gigantic infrastructure revolution across the country, especially the Legacy Highway projects.
The legacy projects include the 750-kilometre Lagos–Calabar Coastal Highway; the 1,068-kilometre Sokoto–Badagry Superhighway; Trans-Saharan Trade Route, Calabar–Abuja; and 1,100-kilometre Akwanga–Jos–Maiduguri Superhighway.
He said: "Under President Bola Ahmed Tinubu, infrastructure is being delivered without marginalisation. By eliminating broken road corridors, we are improving security, boosting food distribution, and driving economic opportunity across every geopolitical zone."
Umahi touched on Southeast political dynamics, defending the Tinubu administration’s infrastructure footprint in the Southeast while encouraging political alignment over regional opposition politics.
Senior Special Assistant to the President on Community Engagement, Southwest, Moremi Ojudu stated that land values and commercial rents along newly dualised/paved corridors such as the Abuja outbound expressways have surged, reflecting increased economic interest in the suburban zones.
She said: “Landlords along all our expressways have increased rents because of these legacy projects. The communities are thanking Mr. President for these developments.
“We appreciate your openness—anytime we share community feedback, you respond immediately. We shared concerns regarding the Abuja corridor, and we hope the work continues simultaneously as we head into the festive season.”
Senior Special Assistant to the President on Community Engagements, Southeast, Barr. Chioma Nweze praised Umahi for embracing community engagement as well as his mentorship.
“Based on your teachings and field experience, I feel like I will be called an engineer by the end of this tenure.
This was even as the NANS and NACES endorsed the infrastructure renewal approved by President Bola Tinubu and implemented by the Ministry of Works. The students took turns to share the success stories of infrastructure interventions across the country.
President of NANS, Comrade Akinteye Babatunde Afeez requested immediate construction of a pedestrian overhead bridge at the main gate of the Federal Cooperative College, Kaduna, along the busy Abuja–Zaria Expressway to safeguard commuting students.
He pleaded with State Governments to rapidly build state access roads linking local farming communities and suburban hubs directly to newly completed federal trunk roads.
"As the most formidable student body in the country, our mandate extends beyond advocacy to social oversight. We did not just stay on campus—we went into the field to verify these projects. What we saw in quality, pavement thickness, and scope is unprecedented.
“State governments must construct and pave connecting feeder roads to the Federal Trunk/Superhighway corridors. This will unlock full last-mile connectivity for rural agricultural communities and regional markets,” he said.
President of NACES, Comrade Kazeem Usman noted that the exercise was intended to verify construction progress, assess technical durability, and evaluate the direct impact of major road infrastructure on campus connectivity, safety, and rural economies.
He requested collaborative campaigns between Federal/State Ministries of Works and Student Unions, saying that student-farmers on site highlighted that completed links would drastically reduce transit times for agricultural produce moving to southern markets in the coming weeks.
"Everywhere we go, you see the Honorable Minister with the measuring tape ensuring engineering details are adhered to. This administration has proven that quality infrastructure is a priority for Nigerian youth and students,” Usman said.
The student leaders commended the Ministry for incorporating continuous solar-powered street lighting and planned CCTV coverage along major interstate corridors such as the 350km Abuja–Kaduna–Zaria–Kano route, to eliminate high-risk blind spots and deter highway criminality.
They recommended immediate construction of a pedestrian flyover/bridge directly facing the main campus gate at the Federal Cooperative College, Kaduna, as it would prevent pedestrian-vehicle collisions and ensure safe crossing for commuting students.
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