President Bola Tinubu, on Wednesday, admitted that it was not an easy decision to end the controversial fuel subsidy regime in Nigeria.
He, however, added that it was a necessary and timely decision needed to save Nigeria’s economy from total collapse.
Bellnews reports that President Tinubu made the acknowledgement during his nationwide broadcast to Nigerians on the occasion of the country’s 65th Independence Anniversary celebration.
It would be recalled that President Tinubu, on May 29, 2023, right from the venue of his inauguration, declared an end to the fuel subsidy regime, prompting an immediate rise in the price of petrol, heightened inflation and other economic pressures.
Addressing the issue during his speech on Wednesday, Tinubu stated that the fuel subsidy regime was a corrupt system that needed to be abolished. He added that since the removal of fuel subsidy, the accruing financial resources have been deployed to other areas of development in the country.
“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.
“In resetting our country for sustainable growth, we ended the corrupt fuel subsidies and multiple foreign exchange rates that created massive incentives for a rentier economy, benefiting only a tiny minority. At the same time, the masses received little or nothing from our commonwealth,” he said.
The President explained that the money saved from subsidy removal was channelled to other key areas, education, healthcare, security, agriculture, and infrastructure, areas he said would improve the lives of Nigerians.
“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.
“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. Our macro-economic progress has proven that our sacrifices have not been in vain. Together, we are laying a new foundation cast in concrete, not on quicksand,” he said.
Tinubu boasted that the tough choices made by his administration have resulted in the availability of more resources for the government at all levels to care for the people and cater to developmental projects.
“As a result of the tough decisions we made, the Federal and State governments, including Local Governments, now have more resources to take care of the people at the lower level of the ladder, to address our development challenges,” the president noted.