Tinubu: Fuel Subsidy Removal Saved Nigeria From Bankruptcy

On Friday, President Bola Tinubu announced that his administration’s decision to eliminate fuel subsidies prevented Nigeria from going bankrupt and set the stage for the country’s economy to gradually recover.

Speaking at a Sallah celebration and third anniversary meeting with state governors, the President claimed that despite its agony, the contentious program was required to save the nation from financial collapse and reestablish economic stability.

The deputy governors of Borno and Kano states, together with the governors of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi states, were present.

Tinubu claimed that Nigeria has spent enormous sums of money on an unsustainable subsidy system for years, which benefited a small number of people while denying vital industries much-needed investment.

“We made it through despite the difficulties at the time. We were accused and faced legal action. We got through them. Nigeria has managed to avoid bankruptcy. The economy is doing better. It’s expanding. The President stated, “Agriculture is booming.”

Infrastructure, agriculture, social investment, foreign exchange management, and budgetary restraint reforms, according to Tinubu, were starting to pay off in the form of increased investor confidence and economic expansion.

Additionally, he praised governors for encouraging Nigerians to put up with the suffering that came with the administration’s changes.

“I’m relieved that governors are no longer requesting interventions, borrowing money from the federal government, and struggling to make ends meet or pay their salaries. You sustained hope and the spirit. The effects are evident now,” he said.

The President also noted that gains were being seen in the housing and agricultural sectors, as well as in road construction and restoration projects across the country.

“If we make effective use of the land in your possession and in your various states, we will achieve food sovereignty,” he declared.

Nigerians were reassured by Tinubu that his administration would keep putting into practice people-oriented policies meant to lessen hardship, increase employment, improve food security, and foster inclusive growth.

Vice President Kashim Shettima commended Tinubu for his bravery in opposing powerful interests in the oil industry and eliminating the subsidy.

“You did not ascend to power during a time of ease. The house needed more than just a carpenter when you arrived. Shettima stated, “It took a builder with the guts to look at the foundation you inherited.”

Instead of calling the reforms “a picnic for the chicken-hearted,” he called them a “battlefield,” adding that the President had made the decision to address long-standing inconsistencies that were impeding the nation.

Abdulrahman Abdulrazaq, the governor of Kwara State, stated on behalf of the Nigeria Governors’ Forum that the elimination of fuel subsidies and fiscal reforms had greatly increased the financial capability of states.

He said that several governments could immediately start important infrastructure and social investment projects, pay off debt, and settle salary and pension arrears.

“I think the country was shocked by Mr. President’s audacity to implement that serious policy, but it has benefited greatly from it today,” Abdulrazaq stated.

He noted that the national minimum wage would eventually increase to N100,000 and that several states were no longer need to issue bonds or take on significant debt in order to fulfill responsibilities.

The Progressive Governors Forum’s chair, Hope Uzodinma, the governor of Imo State, also praised Tinubu for implementing audacious measures that stabilized the economy.

Uzodinma stated, “You have virtually recovered Nigeria from the brink of collapse to a state of stability and survival.” He also mentioned that governors had given the President a “100 percent” rating for his performance.

Babajide Sanwo-Olu, the governor of Lagos State, had previously welcomed his colleagues to Lagos and expressed gratitude for their unwavering support of the President and his administration.