President Bola Tinubu on Friday said the removal of fuel subsidy by his administration saved Nigeria from “imminent bankruptcy” and laid the foundation for the gradual economic recovery.
Mr Tinubu had, in his inaugural address on 29 May 2023, announced the removal of the subsidy to lift a major financial burden off the back of the government.
The policy engineered Nigeria’s worst cost-of-living crises in a generation with food prices increasing by over 200 per cent since he assumed office.
Speaking when he hosted state governors who came to celebrate with him the Sallah and the third anniversary of the administration, Mr Tinubu acknowledged that the decision to remove fuel subsidy was “difficult and painful” but necessary to rescue the country from fiscal collapse and restore economic stability.
The Nigerian government has, for decades, subsidised fuel and fixed retail prices of petroleum products. The payment has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects nationwide.
On Friday, Mr Tinubu said the subsidy era was unsustainable, adding that the country spent years on payments that benefited only a few while denying critical sectors of the economy the investments they needed.
“It was challenging at the time, but we survived. We face litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming,” Presidential spokesperson Bayo Onanuga, in the statement, on Friday quoted Mr Tinubu as saying.
“Today I was watching some clips of the Sokoto -Badagry axis. Imagine how many dams on that corridor for irrigation, for farm land, for electricity. Well, many of you have survived and promoted the perseverance of many of our people, asking them to trust this government, and you have built that trust around one person: my leadership. I thank you very much,’’ he said.
Mr Tinubu also thanked Nigerians for their patience, resilience and understanding, assuring them that the difficult phase was gradually yielding positive outcomes.
He said ongoing reforms in infrastructure, agriculture, social investment, foreign exchange management and fiscal discipline were beginning to restore investor confidence and improve economic prospects.
Speaking further, Mr Tinubu commended the governors for their cooperation, support and commitment to national development.
He noted that the partnership between the federal and state governments played a vital role in stabilising the economy.
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“I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries, no more. You kept the spirit, you kept the hope. You persuaded our people to be patient and endure these three years of painful reform, during which we put the economy on a reset.
“Today, the benefits are showing. The economy has recovered. Macroeconomic indices are doing very well. Construction is ongoing on roads and infrastructure; the ones abandoned have been rehabilitated.
“The housing industry is coming on very well. Agriculture will prosper again. We will achieve food sovereignty if we utilise the land that is in your possession and in your various states effectively,’’ he said.
Mr Tinubu assured Nigerians that his administration would continue to implement people-oriented policies aimed at reducing hardship, creating jobs, strengthening food security and ensuring inclusive economic growth.
In attendance, according to the statement, were the Governors of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi States, as well as the deputy governors of Borno and Kano.
