President Bola Ahmed Tinubu has reiterated that the bold decision to remove the unsustainable fuel subsidy regime in 2023 prevented Nigeria from sliding into economic bankruptcy and set the country on a path to sustainable growth.
Speaking during engagements marking the third anniversary of his administration’s inauguration, President Tinubu emphasized that the subsidy system had become a drain on national resources, benefiting smugglers, fraudsters, and a privileged few while threatening the nation’s fiscal stability. “We could not continue with the wasteful subsidy system,” the President stated. “Nigeria faced imminent bankruptcy, and swift action was necessary to reset our economy.”
The removal of the subsidy has freed up significant resources previously allocated to an unproductive regime. Early estimates indicated savings of over one trillion naira within the first two months alone, with the funds redirected toward critical infrastructure development, social investment programs, and support for state governments.
Several state governors have corroborated the President’s position, noting that improved revenue allocations have enabled many states to reduce debt burdens, meet salary obligations without borrowing, and invest in local development. One governor highlighted a 40% reduction in state debt and greater fiscal independence as direct outcomes of the reforms.
President Tinubu acknowledged the temporary hardships faced by citizens due to the inevitable adjustments in fuel prices and broader economic reforms, including the unification of exchange rates. However, he expressed optimism about the long-term benefits, citing steady GDP growth around 4% and projections of 4.5% to 5.5% for 2026, alongside gains in agriculture, infrastructure, and reduced dependency on imported fuel.
“The subsidy was fake life,” the President added. “We cannot spend our future generations’ endowment upfront. These reforms, though challenging, are building a more resilient and self-sufficient Nigeria.”
The administration continues to implement targeted palliatives, including cash transfers, compressed natural gas (CNG) initiatives, and food security programs to mitigate impacts on vulnerable households while sustaining the reform momentum.