President Bola Ahmed Tinubu has defended his administration’s decision to remove Nigeria’s fuel subsidy, arguing that the policy prevented an impending fiscal crisis and laid the groundwork for economic recovery despite the hardship experienced by many households.
Speaking on Friday while hosting state governors during Eid-el-Kabir celebrations and activities marking the third anniversary of his administration, Tinubu said the subsidy removal was a difficult but necessary reform to stabilize public finances and restore long-term economic growth.
The President noted that successive governments had spent vast sums on fuel subsidies that strained public finances while limiting investment in critical sectors such as infrastructure, agriculture, healthcare, and education.
“It was challenging at the time, but we survived. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming,” Tinubu said.
The President acknowledged the economic pain associated with the reform but maintained that the policy had helped reset the economy and improve fiscal sustainability. He cited ongoing investments in transportation infrastructure, housing, agriculture, and irrigation projects as evidence that the benefits of the reforms are beginning to emerge.
Tinubu also praised state governors for supporting the reform agenda and encouraging citizens to remain patient during what he described as a period of “painful reform.”
According to the President, the fiscal changes have strengthened the financial position of state governments, reducing their dependence on federal intervention funds and enabling them to meet salary obligations and undertake development projects.
“The economy has recovered. Macroeconomic indices are doing very well. Construction is ongoing on roads and infrastructure. The housing industry is coming on very well. Agriculture will prosper again, and we will achieve food sovereignty if we effectively utilise the land available across the states,” he said.
Vice President Kashim Shettima described the subsidy removal as a courageous decision that confronted long-standing structural challenges in Nigeria’s oil sector.
“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 broader fiscal reforms had significantly increased revenues available to state governments.
According to him, the enhanced revenues have enabled many states to clear salary arrears, settle pension obligations, reduce debt burdens, and finance major infrastructure and social investment programmes.
“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.
The governors who attended the meeting included those from Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun and Kogi states, alongside the deputy governors of Borno and Kano.
While the administration continues to face criticism over rising living costs and inflation following the subsidy removal, the President insisted that ongoing reforms in fiscal management, foreign exchange policy, agriculture and infrastructure development are improving investor confidence and strengthening the foundations of Nigeria’s economy.
Tinubu pledged that his government would continue implementing policies aimed at easing economic hardship, creating jobs, strengthening food security and promoting inclusive economic growth.
