President Bola Ahmed Tinubu has explained that the removal of fuel subsidy was driven by the need to end entrenched corruption in the petroleum sector and redirect resources toward national development.
Speaking during a nationwide broadcast to mark Nigeria’s 65th Independence Anniversary on Wednesday, Tinubu acknowledged that the decision was difficult but necessary to secure the country’s future.
It will be recalled that on May 29, 2023, during his inauguration, the president declared an end to the subsidy regime, a move that immediately triggered a surge in petrol prices, inflation, and economic hardship for many Nigerians.
Defending the decision, Tinubu said the subsidy system had become a channel of corruption that enriched a privileged few while leaving ordinary citizens with little benefit.
“As a new administration, we faced a simple choice: continue business as usual and watch our nation drift, or embark on a courageous, fundamental reform path. We chose the path of reform. We chose the path of tomorrow over the comfort of today,” he said.
He explained that the removal of fuel subsidy and the unification of foreign exchange rates were bold reforms designed to reset the economy on a sustainable growth path.
“Following the removal of the corrupt petroleum subsidy, we have freed up trillions of naira for targeted investment in the real economy and social programmes for the most vulnerable, as well as all tiers of government,” Tinubu noted.
The president highlighted that savings from subsidy removal were already being channelled into key sectors such as education, healthcare, security, agriculture, and infrastructure—areas he said would directly improve citizens’ lives.
While acknowledging the pains Nigerians are experiencing as a result of the reforms, Tinubu insisted they were temporary sacrifices necessary to avert economic collapse.
“I have always candidly acknowledged that these reforms have come with some temporary pains. However, the alternative of allowing our country to descend into economic chaos or bankruptcy was not an option,” he said. “Together, we are laying a new foundation cast in concrete, not on quicksand.”
He added that the reforms had made more financial resources available to the federal, state, and local governments to address grassroots needs and developmental challenges.