Enugu Offers Model for Turning Subsidy Removal Gains into Development — Rep. Dennis Agbo

The member representing Igbo-Eze North/Udenu Federal Constituency in the House of Representatives, Rt. Hon. Dennis Nnamdi Agbo (FCA), has described Enugu State as a model for translating increased government revenues following fuel subsidy removal into tangible development outcomes.

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Agbo stated this while delivering a public lecture titled “Three Years of Post-Subsidy Removal: Evaluating the Socio-Economic Effects of Nigeria’s Deregulated Downstream Sector” at the University of Nigeria, Nsukka, on Tuesday, October 14, 2026.

The lawmaker argued that the responsibility of government extends beyond ending an unsustainable subsidy regime to ensuring that the resources freed up by the reform translate into improved infrastructure, affordable transportation, education, healthcare and productive opportunities for citizens.

He noted that Enugu State’s Federation Account receipts rose from ₦117.50 billion in 2023 to ₦255.67 billion in 2024 and ₦259.59 billion in 2025. The state’s internally generated revenue (IGR), he added, increased from ₦37.49 billion in 2023 to ₦180.50 billion in 2024 and ₦407.76 billion in 2025.

However, Agbo cautioned against attributing the entire increase in revenue to fuel subsidy removal, noting that other factors, including exchange-rate reforms, federal transfers and the state’s revenue-generation initiatives, also contributed to the growth.

“These gains reflect several factors, including subsidy removal, exchange-rate reforms, other federal transfers and the state’s revenue initiatives. They cannot all be classified as subsidy savings. Nevertheless, they demonstrate the increased resources available and the corresponding responsibility to deliver results,” he said.

The federal lawmaker also highlighted Enugu State’s budgetary priorities, noting that capital expenditure accounted for 79.44 per cent of the state’s budget in 2024, 86.29 per cent in 2025 and 80.13 per cent in 2026.

He cited the deployment of 100 compressed natural gas (CNG) mass-transit buses and the construction of five modern transport terminals, including the Nsukka terminal, as practical interventions to address transportation challenges arising from subsidy removal.

“Such investments can connect communities, support businesses and ease the burden of movement when services are reliable and affordable,” he said.

Agbo further maintained that the sustainability of subsidy reform would depend largely on the tangible benefits citizens receive in return for the economic sacrifices associated with the policy.

He stressed that support for subsidy removal must go hand in hand with demands for transparency and accountability, urging all tiers of government to demonstrate how increased revenues translate into improved living conditions, particularly for poor and vulnerable Nigerians.

“Every tier of government must demonstrate how increased revenues improve daily life, particularly for poor and vulnerable Nigerians. Enugu State provides a model worth examining and strengthening,” he said.

The lawmaker concluded with a call for governments to ensure that the end of fuel subsidy translates into lasting improvements in citizens’ welfare.

“Subsidy is gone, and gone for good. Let its departure be matched by enduring improvements in people’s lives,” he declared.