# Nigeria economic reform and fuel subsidy removal > Live situation record from CLSTR: https://clstr.news/situations/nigeria-economic-reform-and-fuel-subsidy-removal > Updated: 2026-10-02T16:49:04.000Z. Sources: 20. Developments: 2. Nigerian government officials have defended the administration’s decision to remove fuel subsidies and unify foreign exchange rates as essential measures to prevent economic collapse. Minister of Solid Minerals Development Dele Alake characterized the subsidy removal as a significant political risk taken by President Bola Tinubu to address a “badly damaged” economy. Alake argued that the previous subsidy regime primarily benefited fuel cartels and wealthy individuals rather than the public, and stated the President chose to “swallow the bitter pill” to prioritize national interest. Vice President Kashim Shettima further defended these reforms, noting that they were necessary when foreign reserves were insufficient to cover even one month of petroleum imports. Shettima stated that the measures have renewed investment and strengthened the oil and gas sector. While acknowledging the high cost of living and public hardship, the administration reported that external reserves have grown toward the $55 billion mark due to increased oil export earnings. Amidst these developments, the Socio-Economic Rights and Accountability Project (SERAP) has called for an investigation into allegations regarding approximately ₦94.4 billion in unremitted or unaccounted petroleum-sector funds. ## Timeline ### 2026-10-02: Nigeria: VP Shettima defends economic reforms and oil sector growth Vice President Kashim Shettima defends President Tinubu’s economic reforms, including subsidy removal, as essential to preventing collapse and revitalizing Nigeria’s oil and gas investment. 16 sources. https://clstr.news/cluster/northwest-petroleum-gas-inaugurates-new-headquarters-in-lagos ### 2026-09-10: Dele Alake defends Tinubu’s fuel subsidy removal as necessary economic risk Minister Dele Alake defended President Bola Tinubu’s removal of Nigeria’s fuel subsidy, calling it a necessary political risk to fix a damaged economy and dismantle fuel cartels. 6 sources. https://clstr.news/cluster/dele-alake-defends-tinubus-fuel-subsidy-removal-as-necessary-economic-risk --- Cite as: Nigeria economic reform and fuel subsidy removal. CLSTR, https://clstr.news/situations/nigeria-economic-reform-and-fuel-subsidy-removal