President Bola Tinubu has defended his administration’s decision to end fuel subsidy payments, saying the move helped prevent a financial crisis and set the country on a path toward recovery.
Speaking during a meeting with state governors who visited him for Sallah celebrations and the third anniversary of his presidency, Tinubu said Nigeria’s economy has become more stable since the policy shift introduced at the start of his tenure in May 2023.
The President recalled that the removal of fuel subsidy led to immediate increases in transport and commodity prices, which triggered widespread public concern and inflationary pressure. However, he maintained that continuing the subsidy scheme would have placed the nation at risk of insolvency due to the heavy burden it imposed on public finances.
According to him, the funds previously used to support fuel payments have now been redirected into other sectors of the economy, helping to strengthen agriculture, infrastructure development, and fiscal management.
Tinubu also claimed that the reform has improved government revenue distribution, allowing state governments to meet salary obligations more easily and reduce dependence on federal borrowing.
Governors from across the country, including key political figures such as Lagos State Governor Babajide Sanwo-Olu and Kwara State Governor Abdulrahman Abdulrazaq, praised the policy direction. Abdulrazaq noted that increased allocations have enabled states to clear outstanding wages and expand development projects.
Imo State Governor Hope Uzodinma also expressed support for the administration’s economic reforms, arguing that the country had avoided deeper instability through decisive policy choices.
Vice President Kashim Shettima added that the subsidy removal addressed long-standing structural weaknesses in the oil sector and reflected the government’s willingness to take difficult but necessary decisions.
The meeting also served as a platform for renewed assurances from the presidency that further reforms would focus on job creation, food security, and reducing economic hardship while sustaining investor confidence.
The presidency says the administration will continue to monitor macroeconomic indicators as it pushes forward with broader economic restructuring efforts.
