Rep Dennis Agbo Hails Enugu as Model for Utilising Post-Subsidy Gains

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

Agbo made the observation 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.

The lawmaker stressed that the success of subsidy removal should not be measured solely by the savings generated but by the extent to which the additional resources available to government improve citizens’ living conditions.

According to him, government’s responsibility extends beyond ending an unsustainable subsidy regime to ensuring that the resources freed up by the reform translate into better infrastructure, affordable transportation, education, healthcare and productive opportunities.

Agbo cited Enugu State’s rising revenue profile as evidence of the increased fiscal resources available to governments and the need to deploy them effectively.

He disclosed that the state’s Federation Account receipts rose from N117.50 billion in 2023 to N255.67 billion in 2024 and N259.59 billion in 2025. Its Internally Generated Revenue also increased from N37.49 billion in 2023 to N180.50 billion in 2024 and N407.76 billion in 2025.

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

“These figures reflect several factors. 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 emphasis on capital projects, 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 identified 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 ease transportation difficulties arising from the removal of fuel subsidy.

According to Agbo, investments in mass transit can improve connectivity, support commercial activities and reduce the burden of transportation on residents, provided the services remain reliable and affordable.

He maintained that the long-term sustainability of subsidy removal would depend on the ability of governments at all levels to demonstrate measurable improvements in the welfare of Nigerians, particularly poor and vulnerable citizens.

Agbo further emphasised that support for subsidy removal should go hand in hand with demands for transparency and accountability in the utilisation of public funds.

“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.

He concluded that the end of fuel subsidy should mark the beginning of lasting improvements in the lives of Nigerians.

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