Tinubu: Ending fuel subsidies saved Nigeria from bankruptcy and restored economic stability!

Published by Godday Atuba

In a significant statement that underscores the economic trajectory of Nigeria, President Bola Tinubu has boldly proclaimed that the removal of the fuel subsidy by his administration has not only averted an imminent national bankruptcy but has also laid the groundwork for a gradual recovery of the nation’s economy.This

revelation came to light during a recent gathering in Lagos, where the President hosted a number of state governors for a Sallah celebration, marking an important milestone—the third anniversary of his administration.

The gathering, enriched by the presence of governors from diverse states such as Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi, alongside deputy governors from Borno and Kano, was not merely a festive occasion but a platform for the President to articulate the profound implications of his policy decisions.

Reflecting back on May 29, 2023, the day of his inauguration when he boldly declared, “fuel subsidy is gone,” Tinubu noted that this historic decision, while leading to an immediate surge in petrol prices and subsequent increases in transportation fares and the cost of goods and services, was a necessary sacrifice to stave off fiscal collapse.He

openly acknowledged the economic hardships that this removal triggered, recognizing that it was indeed a painful transition for many Nigerians. However, he remained steadfast in his belief that this decision was critical for achieving long-term economic stability.Tinubu pointed out that the years of fuel subsidy payments had significantly drained national resources, diverting vital investments away from key sectors of the economy. “It was challenging at the time, but we survived,” he stated, emphasizing the resilience of the nation. He addressed the skeptics head-on, dismissing accusations and litigation that arose from his decision. “Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming,” he confidently proclaimed.

These words serve as both a testament to his administration’s efforts and a clearer message that the country is on the path to recovery.Further articulating his vision, President Tinubu explained that ongoing reforms across multiple sectors—including infrastructure, agriculture, foreign exchange management, fiscal discipline, and social investment—are already fostering a revitalization of investor confidence and enhancing the economic outlook for the nation. In his address, he assured Nigerians of his commitment to continuing the implementation of policies that are focused on alleviating hardship, creating jobs, ensuring food security, and fostering inclusive growth across the board.The President extended his gratitude to the attending governors, commending their cooperation and support. He underscored that stronger collaboration between the federal and state governments had been instrumental in stabilizing the economy.

He highlighted that improved revenue allocations to states have equipped them to meet salary obligations, lessen reliance on borrowing, and engage in meaningful developmental projects. “I’m glad governors are no longer borrowing from the federal government,” Tinubu remarked, emphasizing a new spirit of self-sufficiency among the states. “You kept the spirit, you kept the hope.”In a moving appeal to the citizenry, he encouraged patience and endurance through the past three years of painful reforms, asserting that the benefits of these difficult changes are beginning to manifest positively on the ground. Macroeconomic indicators, as he noted, are improving, while critical infrastructure projects—ranging from roads to housing developments—are being revived or completed. The agricultural sector, he optimistically stated, has immense potential; Nigeria can achieve food sovereignty if its abundant land resources are effectively harnessed. Vice President Kashim Shettima, also in attendance, lauded the President’s courageous leadership. He characterized the subsidy removal as a bold reform that has tackled the deep-rooted challenges endemic within the oil sector. Shettima articulated that this administration has chosen the path of confronting structural issues head-on, rather than delaying difficult decisions.Echoing the benefits of the subsidy removal, Kwara State Governor Abdulrahman Abdulrazaq, who chairs the Nigeria Governors’ Forum, emphasized that this policy shift has significantly increased the revenue available to states.

This newfound fiscal strength has empowered governors to clear salary and pension arrears and invest in crucial infrastructure and social initiatives. He posited the proposal for a new minimum wage benchmark of N100,000, highlighting the positive outcomes of these reforms.

Moreover, Imo State Governor and Chairman of the Progressive Governors Forum, Hope Uzodinma, reflected on the administration’s performance with commendation, noting that the country has been stabilized and pulled back from the brink of collapse.Heconveyed the collective optimism among governors regarding the reforms undertaken by Tinubu’s leadership, emphasizing that they had assessed these developments with a favorable lens.In a warm welcome, Lagos State Governor Babajide Sanwo-Olu set a jubilant tone for the gathering, expressing gratitude to his counterparts for their unwavering support for the administration.

The gathering, rich with political camaraderie, was not just about celebrating Sallah but a collective affirmation of the strides made in governance and economic revitalization under Tinubu’s watch.

Thus, as the sun sets on the third anniversary of President Bola Tinubu’s tenure, it rises on a newly invigorated economy, with hope blossoming in the hearts of many Nigerians, inspired by the promise of a brighter, more sustainable future.