President Bola Tinubu has reiterated that the decision to remove the fuel subsidy was a crucial step for the long-term benefit of Nigeria and its citizens.
Upon assuming office on May 29, 2023, President Tinubu immediately abolished the fuel subsidy, a move that resulted in significant economic hardships, including steep rises in the prices of goods and services. Despite the challenges, Tinubu has maintained that the decision was essential to secure Nigeria’s future and the prosperity of generations yet to come.
In his first presidential media chat on Monday, December 23, 2023, President Tinubu explained that the removal of the subsidy was a necessary reform aimed at halting the unsustainable financial practices of the past. He emphasized that Nigeria had been living beyond its means, consuming its future wealth without making the necessary investments.
He remarked, “For too long, Nigeria has been squandering its future. We were not investing in our growth, but instead, depleting the resources that should have been used for the well-being of future generations. The decision to remove the subsidy was not just a financial move; it was a step towards reshaping the way we manage our resources. The previous system was unsustainable. How could we justify spending on fuel subsidies when our revenues could not support such expenditures?”
The president also pointed out the inefficiency of the system, where subsidized fuel was being consumed not only domestically but also smuggled into neighboring countries. He continued, “We were essentially giving away resources meant for Nigeria’s development to other nations. The subsidy system was allowing neighboring countries to benefit at Nigeria’s expense. I have no regrets about removing it. The reform was absolutely necessary to avoid further financial distress.”
President Tinubu underscored that the reform, though difficult in the short term, was essential for the economic survival and growth of the nation. “We must learn to manage our resources responsibly. Our future depends on it. We cannot continue to spend the investments that belong to future generations today,” he concluded.
