Fuel subsidy removal saved Nigeria from bankruptcy – Tinubu Insist

By Adebola Isimijola, Lagos

President Bola Ahmed Tinubu on Friday defended his administration’s decision to remove fuel subsidy, saying the policy saved Nigeria from imminent bankruptcy and laid the foundation for the country’s economic recovery.

Speaking while hosting governors at his Lagos residence to celebrate Eid-el-Kabir and the third anniversary of his administration, Tinubu said the difficult reform had helped stabilise the economy despite initial resistance and hardship.

The President told the governors that years of unsustainable subsidy payments had drained public finances and deprived critical sectors of much needed investments.

“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,” Tinubu said.

The meeting was attended by governors from 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.

The President thanked Nigerians for their patience and resilience during what he described as three years of painful but necessary reforms, assuring them that the benefits were beginning to emerge.

According to him, ongoing reforms in infrastructure, agriculture, social investment, foreign exchange management and fiscal discipline are restoring investor confidence and improving economic prospects.

Tinubu also commended state governors for supporting the reforms and helping to sustain public confidence in government policies.

“I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive or pay salaries. You kept the spirit and the hope alive. You persuaded our people to be patient and endure these three years of painful reform during which we put the economy on a reset. Today, the benefits are showing,” he said.

The President added that construction work was progressing on major roads and infrastructure projects across the country, while the housing and agricultural sectors were showing signs of revival.

“We will achieve food sovereignty if we utilise the land that is in your possession and in your various states effectively,” he said.

Vice President Kashim Shettima praised Tinubu’s courage in removing fuel subsidy, describing the move as a bold step that previous administrations had avoided.

“You did not come to power in the season of ease. You came at a time when the house required a builder with the courage to examine the foundation you inherited,” Shettima said.

He added that the President had chosen to confront longstanding economic distortions rather than postpone difficult decisions.

Speaking on behalf of the Nigeria Governors’ Forum, AbdulRahman AbdulRazaq said the subsidy removal and related fiscal reforms had significantly improved the financial position of state governments.

According to him, increased revenues enabled states to clear salary and pension arrears, reduce debt burdens and undertake major infrastructure and social investment projects.

“I think the nation was shocked by the audacity of Mr President to implement that serious policy, but today it has benefited immensely from that policy,” AbdulRazaq said.

He noted that many states were now reducing debt levels rather than relying on borrowing and suggested a future review of the national minimum wage to N100,000.

Also speaking, Chairman of the Progressive Governors Forum and Governor of Imo State, Hope Uzodinma, said Tinubu’s reforms had rescued the country from economic collapse and restored stability.

“We have assessed your performance, Mr President, and I’m happy to announce that we have scored it 100 per cent,” Uzodinma said.

Earlier, Babajide Sanwo-Olu welcomed his colleagues to Lagos and thanked them for their continued support for the President.

The President assured Nigerians that his administration would continue implementing policies aimed at reducing hardship, creating jobs, strengthening food security and promoting inclusive economic growth.