President Bola Tinubu has said that the removal of fuel subsidy by his administration averted imminent national bankruptcy and laid the foundation for the gradual recovery of the economy. This was revealed in a statement signed by the Special Adviser to the President on Information and Strategy.
Bayo Onanuga on Friday, where Tinubu hosted state governors who visited him to celebrate Sallah and mark the third anniversary of his administration. READ ALSO: Protest Rocks Ibadan Over Kidnapped Teachers, Schoolchildren Governors in attendance included those 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.
On May 29, 2023, during his inauguration as President, Tinubu announced that “fuel subsidy is gone,” effectively ending the programme. The decision triggered an immediate surge in petrol prices, transportation fares and the cost of goods and services, contributing to a period of economic hardship and heightened inflation.
Tinubu acknowledged that the decision to remove the subsidy was difficult and painful for many Nigerians, but maintained that it became necessary to prevent fiscal collapse and restore long-term economic stability. According to him, years of subsidy payments had drained national resources and diverted investments away from critical sectors of the economy.
“It was challenging at the time, but we survived. We faced litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming,” the President said. He explained that ongoing reforms in infrastructure, agriculture, foreign exchange management, fiscal discipline and social investment were already beginning to restore investor confidence and improve economic prospects.
He also assured Nigerians that his administration would continue implementing people-oriented policies aimed at reducing hardship, creating jobs, strengthening food security and promoting inclusive growth. Tinubu commended the governors for their cooperation and support, noting that stronger collaboration between the federal and state governments had contributed to economic stabilisation.