Tinubu Speaks Out: Why Scrapping Nigeria’s Fuel Subsidy Was Painful But Inevitable

President Bola Tinubu on Wednesday acknowledged that ending Nigeria’s controversial fuel subsidy was a difficult but unavoidable decision.

Speaking in a nationwide broadcast to mark the country’s 65th Independence Anniversary, the President said the move was necessary to rescue Nigeria’s economy from imminent collapse.

It will be recalled that Tinubu, during his inauguration on May 29, 2023, announced the removal of fuel subsidy — a decision that immediately triggered a sharp increase in petrol prices, inflation, and widespread economic hardship.

Defending the policy, Tinubu described the fuel subsidy as a corrupt system that enriched a few at the expense of the masses. According to him, funds saved since the subsidy removal have been redirected to critical sectors including education, healthcare, security, agriculture, and infrastructure.

“As a new administration, we faced a stark choice: to continue with the old ways and watch our nation sink further, or to embrace bold reforms that would secure our future. We chose the path of reform — the path of tomorrow over the comfort of today,” he declared.

Tinubu further explained that ending the subsidy and unifying the foreign exchange market dismantled a rentier system that benefitted only a privileged minority. He stressed that trillions of naira previously lost to subsidies are now being invested in programmes that directly impact ordinary Nigerians.

“Following the removal of the corrupt petroleum subsidy, we have freed up trillions for targeted investments in the real economy and social welfare programmes for the most vulnerable, as well as for all levels of government,” he said.

While admitting that the reforms have caused temporary hardship, Tinubu insisted that the alternative would have been economic chaos or outright bankruptcy. He maintained that Nigeria’s macroeconomic progress shows the sacrifices are already yielding results.

“As a result of the tough choices we made, the Federal, State, and Local Governments now have more resources to care for the people and tackle our development challenges,” the President added.