Fuel subsidy was noose around Nigeria’s neck, removal is for growth – Tinubu

President Bola Tinubu has dismissed the call for the return fuel subsidy, stating that he is focused fully on delivering governance to the people.

The president made this known in his address to the nation on Sunday. This comes amid nationwide protests tagged #EndBadGovernance.

The protests, which erupted in major cities across the country on Thursday, have degenerated into violence, looting and clashes with security personnel, mostly in the north.

The demonstrators, driven by grievances over economic hardship, high food prices, the removal of fuel subsidies, among others.

Central to Tinubu’s address was the defense of his administration’s economic reforms, particularly the removal of fuel subsidies and the unification of foreign exchange systems.

Read also: Nigeria’s revenue hit N9.1trn in first six months of 2024 – Tinubu

He acknowledged the pain these decisions have caused but emphasised their necessity for long-term economic stability and growth.

“For decades, our economy has remained anaemic and taken a dip because of many misalignments that have stunted our growth. Just over a year ago, our dear country, Nigeria, reached a point where we couldn’t afford to continue the use of temporary solutions to solve long-term problems for the sake of now and our unborn generations.

“I therefore took the painful yet necessary decision to remove fuel subsidies and abolish multiple foreign exchange systems which had constituted a noose around the economic jugular of our Nation and impeded our economic development and progress,” he said.

These reforms, according to the president, have curtailed the profits of smugglers and rent-seekers, and stopped the unintended subsidies extended to neighboring countries.

He, however, dismissed the call for the reverse of the policies, saying that, “these decisions I made were necessary if we must reverse the decades of economic mismanagement that didn’t serve us well. Yes, I agree, the buck stops on my table. But I can assure you that I am focused fully on delivering the governance to the people good governance for that matter.”

Tinubu also reported a resurgence in the oil and gas industry, following reforms to address gaps in the Petroleum Industry Act.

He said oil production has increased to 1.61 million barrels per day, and significant foreign investments are flowing into the sector.

Addressing the reliance on oil-based petrol, the president said his administration has launched the Compressed Natural Gas (CNG) Initiative aimed at reducing transportation costs and saving over two trillion Naira monthly used to import PMS and AGO.

This initiative, according to him, includes the distribution of one million low-cost conversion kits for commercial vehicles, with ongoing setup of conversion centers nationwide.