No Regrets on Subsidy Removal
President Bola Tinubu reaffirmed his decision to remove fuel subsidies, stating it was a critical measure to avert national bankruptcy. Speaking during his first media chat on Monday, Tinubu described the move as unavoidable despite its immediate challenges, emphasizing the long-term benefits for the nation’s economy.
Subsidy Removal and Immediate Impacts
Tinubu’s administration announced the removal of the fuel subsidy during his inauguration on May 29, 2023. The decision led to a significant increase in the price of premium motor spirit (PMS), also known as petrol. However, recent developments have seen prices gradually decrease, influenced by interventions from the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, which have reviewed PMS pricing downward.
Why Subsidy Removal Was Not Phased
Addressing concerns about the abruptness of the removal, the president dismissed suggestions to phase it out gradually.
“It is part of the fear that is unnecessary,” Tinubu stated. “No matter how you cut it or slice it in segments, you still have to meet the bills. So, cut your cloth according to your size. Management is the issue, and we have no choice but to pull the brakes. Otherwise, we were headed for slippery slopes.”
Safeguarding Future Generations
Tinubu underscored the necessity of the policy, asserting that continuing the subsidy would have drained resources meant for future generations. He pointed out that the subsidy system had been exploited by smugglers, depriving Nigerians of their rightful benefits.
“With fuel subsidy, we were spending what belonged to our future. Smuggling activities were bleeding the nation dry, with neighboring countries benefiting unduly,” he said.
Focus on Resource Management
The president highlighted the need for better resource management, urging Nigerians to embrace a culture of efficiency.
“There is no way you will give out fuel and allow the entire neighboring countries to enjoy it like Father Christmas,” Tinubu remarked, emphasizing the importance of teaching financial and resource management at all levels.
While the removal of the subsidy has sparked widespread debate, Tinubu remains firm in his stance, positioning the policy as a cornerstone of his administration’s economic reforms. He called for collective efforts to ensure prudent resource allocation and a sustainable future for Nigeria.
