President Bola Tinubu has explained that removing fuel subsidies was crucial to preventing Nigeria from going bankrupt.
During a panel discussion at the World Economic Forum in Riyadh, Saudi Arabia, on Sunday, April 28, Tinubu expressed his confidence that this was the right move for the nation.
He stated:
“For Nigeria, we firmly believe that economic cooperation and inclusivity are essential to achieving global stability.
“Regarding the decision to eliminate subsidies, there’s no question it was a necessary step to avoid bankruptcy, recalibrate the economy, and set us on a path toward growth.”
“It won’t be easy, but leadership requires making tough decisions when the time calls for it. This was essential for the country. While there’s bound to be resistance, and many will feel the impact, once I believe that the government’s focus is on the public’s best interests, it becomes easier to manage and explain the hardships.
“We’re taking measures to cushion the effects of subsidy removal for the country’s most vulnerable populations. The impact will be felt across the board, but we can’t ignore those who need extra support.
“Fortunately, we have a dynamic and youthful population that’s keen on innovation and technology, eager for quality education, and committed to growth.
“We’re capable of managing this and addressing the economic drawbacks and fallout from removing subsidies.”
The President noted that eliminating fuel subsidies has led to greater accountability, transparency, and fiscal discipline. He also addressed exchange rate unification.
President Tinubu explained that government management of the national currency was crucial to help the Naira compete with other global currencies.
He remarked:
“Managing the currency was necessary to remove artificial distortions in its value. Let’s allow our currency to find its level and compete on equal terms with other world currencies, reducing arbitrage, corruption, and opaqueness.
“We tackled both challenges at the same time. It presented a double-engine problem in a sensitive situation, but we could handle the turbulence because we prioritized inclusive governance and maintained clear communication with the public about what was needed and why.”
