President Bola Tinubu says he removed fuel subsidy to prevent Nigeria from going bankrupt and to reset the economy.
Tinubu described the fuel subsidy removal as necessary for Nigeria, saying he had to make tough but essential decisions like the removal and managing the nation’s currency, effectively removing corruption-laden arbitrage.
The president said this at a panel session at the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday, April 28, 2024.
He said: “Concerning the question of subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt and to reset the economy and the pathway to growth.
“It was going to be difficult, but the hallmark of leadership is making difficult decisions when they need to be made.
“That was necessary for the country. Yes, there have been drawbacks. Yes, there was the expectation that the difficulty would be felt by a greater number of people. But, of course, it was the interest of our people that was the primary focus of the government.
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“Along the line, there was an arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country. We shared the pain across the board. We cannot, but include those who are very vulnerable.
“Luckily, we have a very vibrant youth population interested in innovation and highly ready to leverage technology, good education, and who remain committed to growth.
“We were able to manage that and partition the economic drawback and the fallout of the subsidy removal equally; engendering transparency, accountability, and fiscal discipline for the country. And that, to me, is most important, which is focusing on what direction we should head in. I will pursue that rigorously.
“The currency management was necessary, equally to remove the artificial element of value in our currency. Hence, our local currency finds its level and competes with the rest of the world’s currencies as we remove corrupt arbitrage and opaqueness. That, we did.
“At the same time, that is a two-engine problem in a very turbulent situation for the government. But we are able to manage that turbulence because we prepared for this with inclusivity in governance and rapid communication with the public.”
Also speaking at the event, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, commended President Tinubu for offering insights on how to execute strategic economic reforms.
“President Tinubu has emphasised the right things about what world leaders must consider primary in the execution of strategic economic reform.
“He said there is a need to ensure that reforms are accompanied by a human touch. The needs of people must be identified and catered to as governments implement tough but necessary reforms,” the IMF boss was quoted as saying in a statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale.
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