Tinubu Speaks On Fuel Subsidy Removal Amid Nationwide Protests

President Bola Tinubu has justified the Federal Government’s decision to remove the fuel subsidy and eliminate multiple foreign exchange rates, citing these measures as essential for promoting economic growth and national development.

In a nationwide address on Sunday, prompted by ongoing protests across the country, President Tinubu explained that Nigeria’s economy had long been hampered by structural misalignments that stalled progress and development.

“Just over a year ago, our dear country, Nigeria, reached a point where we could no longer afford to rely on temporary fixes for long-term problems, both for the sake of our present and future generations,” the president remarked.

He elaborated that the decision to remove the fuel subsidy and abolish multiple exchange rate systems was a difficult but necessary step. These measures, he noted, were designed to curtail the profits made by smugglers and rent-seekers and to prevent the undue subsidies that had been benefiting neighboring countries at the expense of Nigeria’s own economy.

“These decisions were crucial if we are to reverse decades of economic mismanagement that have done us no favors,” Tinubu stated. “Yes, I agree, the responsibility falls on me, but I am fully committed to delivering good governance to the people.”

The president highlighted that in the past 14 months, his administration had made significant progress in rebuilding the economy’s foundation, setting the stage for a future of prosperity for all Nigerians.

“On the fiscal side, aggregate government revenues have more than doubled, reaching over N9.1 trillion in the first half of 2024 compared to the same period in 2023,” he reported. “This success is a result of our efforts to block financial leakages, introduce automation, and mobilize funding creatively without imposing additional burdens on the populace.”

He also noted that productivity in the non-oil sector was on the rise, capitalizing on the opportunities presented by the current economic climate.

In addition, Tinubu pointed out that his government had significantly reduced the portion of revenue spent on debt servicing, from 97 percent to 68 percent, over the past 13 months.

“We have also cleared legitimate outstanding foreign exchange obligations amounting to about $5 billion, without any adverse impact on our programs,” the president added. “This has afforded us greater financial flexibility, enabling us to allocate more resources to essential social services like education and healthcare.”

He emphasized that state and local governments had received the highest allocations in the nation’s history from the Federation Account, as a direct result of these policies.

Furthermore, President Tinubu outlined his administration’s commitment to completing major infrastructure projects across the country, including those inherited from previous administrations. These projects, which encompass roads, bridges, railways, power, and oil and gas developments, are seen as critical to Nigeria’s economic prosperity.