Eshioromeh Sebastian
President Bola Ahmed Tinubu on Friday told state governors that the removal of fuel subsidy saved Nigeria from “imminent bankruptcy,” even as he acknowledged the decision inflicted pain on millions of citizens.
Speaking at a Sallah gathering in Lagos to mark the third anniversary of his administration, Tinubu defended the policy as a necessary rescue measure after years of unsustainable subsidy payments that he said benefited only a privileged few while starving critical sectors of investment.
“It was challenging at the time, but we survived,” the President said. “We faced litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming.”
The meeting was attended by 17 governors and two deputy governors, including the governors of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi States, as well as the deputy governors of Borno and Kano.
Governors’ Testimonies
Kwara State Governor Abdulrahman Abdulrazaq, speaking on behalf of the Nigeria Governors’ Forum, said the subsidy removal and accompanying fiscal reforms had significantly increased revenue accruing to states, enabling them to clear outstanding salaries and pensions and reduce dependence on borrowing.
“Many states were subject to issuing bonds and borrowing money,” Abdulrazaq said. “Today, states are not going to borrow money; they’re not going to issue bonds. In fact, we’re reducing our debt.”
He urged the President to consider raising the national minimum wage to N100,000.
Imo State Governor Hope Uzodinma, who chairs the Progressive Governors Forum, gave the President a 100 percent performance score.
“You have virtually recovered Nigeria from the brink of collapse to a state of stability and survival,” Uzodinma said. “We, the field officers at the subnational level, are indeed very grateful.”
Vice President’s Remarks
Vice President Kashim Shettima praised Tinubu’s “doggedness, tenacity and courage” in confronting corruption in the oil industry through the subsidy removal.
“Your Excellency, Mr President, this is the essence of your leadership,” Shettima said. “You did not come to power in the season of ease. You came at a time when the house required more than a canter. It required a builder with the courage to examine the foundation you inherited.”
He added: “In that defining hour, you chose not to postpone the surgery. You chose not to massage the wound. You chose to confront the contradictions that have held this country hostage for 50 years.”
Economic Outlook
President Tinubu assured Nigerians that the difficult phase was gradually yielding positive outcomes, citing ongoing reforms in infrastructure, agriculture, social investment, foreign exchange management, and fiscal discipline.
He highlighted construction work on roads and abandoned infrastructure, as well as progress in the housing industry. He also made specific reference to the Sokoto-Badagry corridor, noting the potential of dams along that route for irrigation, farmland, and electricity.
“The housing industry is coming on very well,” Tinubu said. “Agriculture will prosper again. We will achieve food sovereignty if we utilise the land that is in your possession and in your various states effectively.”
The President commended governors for their cooperation, noting that states were no longer struggling to pay salaries or relying on federal bailouts.
“I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries — no more,” he said.
Spear News Nigeria reports that fuel subsidy was removed in June 2023, shortly after Tinubu took office, leading to a sharp increase in petrol prices and a spike in transportation and food costs. The Nigeria Labour Congress (NLC) has repeatedly protested the policy, demanding its reversal or significant palliatives.
Neither the NLC nor opposition parties such as the Peoples Democratic Party (PDP) and Labour Party immediately responded to the President’s claims of economic recovery. Critics have previously argued that the savings from subsidy removal have not translated into tangible relief for ordinary Nigerians.
Tinubu thanked Nigerians for their “patience, resilience and understanding,” asking them to trust that the reforms would continue to yield positive outcomes.
Lagos State Governor Babajide Sanwo-Olu, who welcomed his colleagues to the event, urged them to sustain their support for the President.
Discussion about this post