Abuja: The Minister of Solid Minerals Development, Dele Alake, has stated that the removal of the fuel subsidy by President Bola Tinubu’s administration in 2023 was a critical measure that prevented Nigeria’s economy from crashing. Alake made these comments during the 2026 Nigeria Revenue Service-Ministry of Solid Minerals Development (NRS-MSMD) Joint Stakeholder Sensitisation programme (North Central).
According to News Agency of Nigeria, Alake emphasized that without the subsidy removal, Nigeria would have faced severe economic challenges, potentially leading to a complete economic collapse. A statement released by Mrs. Kania Maliki, Head of the Press and Public Relations Department of the ministry, highlighted Alake’s remarks on the necessity of ongoing reforms by the Tinubu administration aimed at economic repositioning.
Alake detailed the precarious financial situation Nigeria was in before these reforms, noting that the country was borrowing funds to pay salaries rather than for capital investment. He explained that this practice was unsustainable and hindered development. The situation was exacerbated by deteriorating credit ratings, which made further borrowing difficult, leading the government to print over 20 trillion in local currency.
Alake attributed Nigeria’s economic decline to past leadership and a societal shift towards heavy importation, which resulted in the closure of local factories and job losses. The country spent substantial amounts on importing goods that could be produced locally, such as wigs, while relying on borrowing to pay salaries. He criticized former leaders for lacking the courage to address these issues and reset the economy.
The minister highlighted the bold steps taken by the Tinubu administration to halt economic mismanagement, close financial leakages, and reform the economy. Permanent Secretary of the ministry, Faruk Yabo, also underscored the importance of repositioning the solid minerals sector to support economic diversification and sustainable development.
Yabo stressed the need for compliance, transparency, and collaboration with the NRS to maximize sector revenues. He emphasized that aligning mining operations with the 2025 Tax Reform Act is essential to reducing revenue leakages and deriving real value from Nigeria’s mineral wealth. He called on industry stakeholders to work together to implement the new royalty administration frameworks effectively.
The event, themed ‘From Resource to Revenue: Aligning Solid Minerals Operations with the 2025 Tax Reform Act’, highlighted the NRS’s new role in collecting mineral royalties while the Ministry of Solid Minerals Development continues its technical and regulatory oversight.