President Bola Tinubu on Friday defended his administration’s decision to remove fuel subsidy, saying the policy ended the era when many state governments relied on borrowing and frequent interventions from the Federal Government to meet basic obligations.
The President stated this while receiving governors from across the country at his residence in Ikoyi, Lagos, during a gathering held to mark the Eid-el-Kabir celebration and the third anniversary of his administration.
According to a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the subsidy removal prevented Nigeria from sliding into bankruptcy and had placed the economy on the path of recovery and growth.
“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,” the President said.
Tinubu argued that the subsidy regime consumed huge public resources for years while denying critical sectors of the economy the investments needed for development.
He noted that reforms in infrastructure, agriculture, social investment, foreign exchange management and fiscal discipline were beginning to yield positive results, restoring investor confidence and improving economic prospects.
The President commended state governors for supporting the reform agenda and helping Nigerians endure the difficult transition period.
“I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries, no more. You kept the spirit and persuaded our people to be patient and endure these three years of painful reform,” he said.
Tinubu added that ongoing investments in roads, housing and agriculture would further strengthen the economy and help Nigeria attain food sovereignty.
Vice President Kashim Shettima described Tinubu’s economic reforms as bold decisions that addressed longstanding structural challenges confronting the country.
“You chose not to postpone the surgery. You chose not to massage the wound. You chose to confront the contradictions that have held this country hostage for 50 years,” Shettima said.
Speaking on behalf of the Nigeria Governors’ Forum, Kwara State Governor AbdulRahman AbdulRazaq said the subsidy removal and other fiscal reforms had significantly improved the financial position of states.
“Many states were subject to issuing bonds and borrowing money. Today, states are not going to borrow money; they’re not going to issue bonds. In fact, we’re reducing our debt,” he stated.
AbdulRazaq also called for an upward review of the national minimum wage to at least N100,000.
Chairman of the Progressive Governors Forum and Governor of Imo State, Hope Uzodinma, praised Tinubu’s leadership, saying governors had assessed his performance and found it worthy of commendation.
“We have assessed your performance, Mr President, and I’m happy to announce that we have scored it 100 per cent,” Uzodinma said.
Governors from Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun and Kogi states attended the meeting, while the deputy governors of Borno and Kano states were also present.
