Tinubu Says Subsidy Removal Prevented Nigeria’s Financial Collapse

Nigeria was on the verge of bankruptcy, but President Bola Tinubu said on Friday that his administration’s withdrawal of gasoline subsidies prevented it and set the stage for the country’s economy to slowly recover.

Speaking at a Sallah celebration and third anniversary meeting with state governors, the President claimed that despite its agony, the contentious program was required to save the nation from fiscal collapse and bring back economic stability.

Governors from the states of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi, together with the deputy governors of Borno and Kano, attended the event.

Tinubu claimed that Nigeria had spent enormous sums of money for years on an unsustainable subsidy system that benefited a small number of people while denying vital industries much-needed investment.

Even though it was difficult at the time, we made it through. We were accused and subject to litigation. We overcame them. Nigeria has avoided bankruptcy and managed to live. Economic conditions have improved. It’s increasing. “Agriculture is flourishing,” the President declared.

Tinubu stated that continued reforms in the areas of infrastructure, agriculture, social investment, foreign exchange management, and fiscal restraint were starting to pay off in the form of increased investor confidence and economic expansion.

Additionally, he praised governors for endorsing the administration’s changes and convincing Nigerians to put up with the hardships that came with them.

“I’m relieved that governors are no longer requesting interventions and borrowing money from the federal government because they don’t know how to pay their salaries or survive.” You maintained the optimism and attitude. He said, “The benefits are evident today.”

The President also stated that gains were being seen in the housing and agricultural sectors, as well as in road construction and repair projects across the country.

He declared, “If we use the land in your possession and in your various states effectively, we will achieve food sovereignty.”

Nigerians were reassured by Tinubu that his administration would keep carrying out people-oriented policies meant to lessen hardship, generate employment, improve food security, and encourage inclusive growth.

Vice President Kashim Shettima commended Tinubu for his bravery in taking away the subsidies and challenging powerful oil industry interests.

“Your rise to prominence did not occur during a time of ease. The house needed more than a carpenter when you arrived. The foundation you inherited needed to be examined by a builder with the guts to do so, Shettima stated.

Instead of calling the reforms “a picnic for the chicken-hearted,” he called them a “battlefield,” adding that the President had made the decision to address long-standing inconsistencies that were holding the nation back.

Abdulrahman Abdulrazaq, the governor of Kwara State, spoke on behalf of the Nigeria Governors’ Forum and stated that the elimination of gasoline subsidies and fiscal reforms had greatly increased the states’ financial capability.

He said that several governments were now able to decrease debt, start vital infrastructure and social investment projects, and pay off salary and pension arrears.

“I think the country was shocked by Mr. President’s audacity to implement that serious policy, but it has benefited immensely from it today,” Abdulrazaq stated.

He stated that the national minimum wage would eventually increase to N100,000 and noted that several states were no longer need to issue bonds or take out large loans in order to fulfill their responsibilities.

Hope Uzodinma, the governor of Imo State and the chair of the Progressive Governors Forum, also praised Tinubu for implementing audacious measures that stabilized the economy.

Uzodinma stated, “You have virtually recovered Nigeria from the brink of collapse to a state of stability and survival,” noting that governors had given the president a “100 percent” rating for his efforts.

Babajide Sanwo-Olu, the governor of Lagos State, had earlier greeted his colleagues and expressed gratitude for their unwavering support of the president and his administration.