President Bola Tinubu says the removal of the petrol subsidy was necessary to prevent Nigeria from going bankrupt.
Tinubu had announced the removal of the subsidy on May 29, 2023 — a development that immediately led to a spike in the price of the product and stoked inflation across the board.
Speaking on Sunday during the opening plenary of the World Economic Forum (WEF) in Saudi Arabia, the president said the decision was to reset the economy and create a pathway for growth in the country.
He acknowledged the difficulty associated with the decision, stressing that it was in the best interest of the people.
“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth,” Tinubu said.
“It is going to be difficult, but the hallmark of leadership is taking difficult decisions at the time it ought to be taken decisively. That was necessary for the country.
“Yes, there will be blowback, there is expectation that the difficulty in it will be felt by a greater number of the people, but once I believe it is their interest that is the focus of the government, it is easier to manage and explain the difficulties.”
Tinubu, however, said there is an arrangement to cushion the effect of the subsidy removal policy on Nigeria’s vulnerable population.
He said Nigeria has a vibrant youthful population interested in discoveries, “highly ready for technology, prioritising education and committed to growth”.
“We are able to manage that and partition the economic drawback and the fallout of the subsidy removal,” the president.
Tinubu said the petrol subsidy removal equally engendered accountability, transparency and fiscal discipline for the country.
