- President Bola Ahmed Tinubu has explained why fuel subsidy removal was necessary for Nigeria
- Tinubu said Nigeria would have gone bankrupt if his administration did not stop payment of fuel subsidy
- According to Tinubu, the decision was in the best interest of Nigerians to “reset the economy towards growth”
Legit.ng journalist Adekunle Dada has over 5 years of experience covering metro and government policy
Riyadh, Saudi Arabia – President Bola Ahmed Tinubu said fuel subsidy removal saved Nigeria from going bankrupt.
Tinubu said the decision of his administration to discontinue fuel subsidy payments was in the interest of the people.
Photo credit: Asiwaju Bola Ahmed Tinubu
Source: UGC
He stated this while speaking at the Special World Economic Forum in Riyadh, Saudi Arabia on Sunday, April 28.
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How subsidy removal saved Nigeria from bankruptcy
As reported by The Punch, Tinubu, however, admitted that the policy came with economic pains.
“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth.”
How to cushion impact of fuel subsidy removal
He added that fuel subsidy removal would save the government money for infrastructural expansion.
Tinubu his government implemented parallel arrangements to cushion the impact on vulnerable citizens after the decision made the value of the Naira unstable and heaped hardship on Nigerians as food prices soared, Channels Television reports.
“Yes, there have been drawbacks. Yes, there was the expectation that a greater number of people would feel the difficulty, but, of course, I believed it was their interest that was the focus of government.
“It is easier to manage and explain the difficulties, but along the line, there was a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country.
“Fuel subsidy is gone,” Tinubu reveals in inaugural address
Legit.ng earlier reported that Tinubu stated that his administration will not continue with the payment of fuel subsidies.
Tinubu made this known during his inaugural speech at the Presidential inauguration at Eagles Square, Abuja, on Monday, May 29.
According to Tinubu, he is fully aware of the removal of subsidy in the 2023 budget, already running before his administration took over, noting that the country cannot continue to pay fuel subsidies.
Source: Legit.ng
