- Fuel Subsidy Removal Saved Nigeria From Collapse – Tinubu
- Says Hardship Temporary, Economy Recovering
- Argued that sustaining the fuel subsidy regime in a global economy was unrealistic
President Bola Ahmed Tinubu has once again defended the economic reforms introduced by his administration, insisting that the removal of fuel subsidy and the unification of the foreign exchange market were necessary steps to rescue Nigeria’s economy despite the hardship currently faced by citizens, Eko Hot Blog reports.
Speaking on Friday during the just-concluded Africa CEO Forum in Kigali, Rwanda, Tinubu described the decisions as bold but unavoidable measures aimed at blocking financial leakages, curbing corruption, and repositioning the economy for long-term stability.
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According to the President, leadership requires the courage to make difficult decisions in the interest of the people, even when such decisions are unpopular.
“The hallmark of a transformative leader is the ability to take decisions and do what must be done at the right time on behalf of the people,” Tinubu said.
He argued that sustaining the fuel subsidy regime in a global economy was unrealistic, adding that the policy had encouraged smuggling, falsification of import documents, and waste of public funds.
“It is a fake life to think you can continue a wasteful subsidy in a global economy. It encouraged smuggling and corruption, and that was dangerous for the country,” he stated.
Tinubu noted that before the subsidy removal, many states struggled to meet basic obligations, including salary payments to workers.
“Out of the 36 states, about 27 could not pay salaries. Yet we are an oil-producing country without functional refineries. That situation could not continue,” he added.
The President acknowledged that the reforms had brought economic pain to Nigerians but compared the process to labour pains before childbirth.
“It is difficult and painful, but like childbirth, there is joy at the end when the result becomes visible,” he said.
Tinubu also defended ongoing tax reforms, maintaining that no country can achieve sustainable development without taxation.
“Everybody wants good roads, hospitals and infrastructure, but nobody wants to pay taxes. The question is: how do we fund development and protect the vulnerable?” he asked.
Despite criticism from opposition figures, the President insisted that the reforms were already producing positive results, claiming that the economy had become more stable and predictable.
“Today, there is light at the end of the tunnel. The economy is stabilising, the naira is becoming more predictable, and planners can now prepare realistic budgets,” he said.
He added that the government had introduced support measures to cushion the impact of the reforms, including grants and allowances for indigent students as well as cash transfers to vulnerable households.
“For students whose parents could not afford school fees, they are now back in school, and we are even providing upkeep allowances for them,” Tinubu disclosed.
The President also reiterated his administration’s support for local industries, particularly the Dangote Refinery, which he described as strategic to Nigeria’s economic future.
According to him, the government approved crude oil sales to the refinery in naira to reduce foreign exchange pressure and simplify transactions.
“You do not need unnecessary bureaucracy and foreign exchange complications. Give him crude in naira and support local production,” Tinubu said.
