Tinubu Defends Fuel Subsidy Removal, Says Policy Saved Nigeria from Bankruptcy

President Bola Ahmed Tinubu has defended his administration’s decision to remove fuel subsidy, declaring that the policy saved Nigeria from imminent bankruptcy and set the country on the path to economic recovery.

Tinubu made the remarks on Friday while hosting governors from across the country who visited him to celebrate the Eid-el-Kabir festival and the third anniversary of his administration.

The President acknowledged that the subsidy removal triggered hardship and attracted criticism, legal challenges and public resistance, but insisted that the decision was necessary to prevent fiscal collapse and restore stability to the nation’s economy.

According to him, successive governments spent huge sums on fuel subsidies that were unsustainable and deprived critical sectors of the resources needed for development.

“It was challenging at the time, but we survived. We faced litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming,” Tinubu said.

He noted that ongoing investments in infrastructure, agriculture, social intervention programmes, foreign exchange reforms and fiscal discipline were beginning to yield results, with improved investor confidence and better economic prospects.

The President also commended state governors for supporting his administration’s reform agenda and helping Nigerians endure the difficult transition period.

“I’m glad governors are no longer borrowing from the federal government and asking for interventions to pay salaries. You kept hope alive and persuaded our people to be patient through these three years of painful reforms,” he said.

Tinubu maintained that key economic indicators were improving, pointing to ongoing road and infrastructure projects, renewed activity in the housing sector and efforts to boost agricultural production.

He expressed optimism that Nigeria would attain food sovereignty if states effectively utilise available land for farming and related investments.

The President assured Nigerians that his administration would continue to implement policies aimed at reducing hardship, creating jobs, improving food security and ensuring inclusive economic growth.

Vice President Kashim Shettima praised Tinubu’s leadership, describing the removal of fuel subsidy as a courageous move that confronted decades of distortions in the oil sector.

According to Shettima, the President chose to tackle long-standing economic challenges rather than postpone difficult decisions.

“You did not come to power in a season of ease. You came at a time when the nation required bold leadership. You chose not to postpone the surgery; you chose to confront the contradictions that have held this country hostage for decades,” he said.

Speaking on behalf of the Nigeria Governors’ Forum, Governor AbdulRahman AbdulRazaq of Kwara State said the subsidy removal and related fiscal reforms had significantly improved the financial position of states.

He noted that increased revenue allocations enabled many states to clear outstanding salaries, pensions and other obligations while embarking on major infrastructure and social investment projects.

“I think the nation was shocked by the audacity of Mr President to implement that serious policy, but today the country has benefited immensely from it,” AbdulRazaq stated.

The governor added that several states had reduced their dependence on borrowing and were making efforts to cut debt burdens.

Also speaking, Chairman of the Progressive Governors’ Forum and Governor of Imo State, Hope Uzodinma, credited Tinubu with steering Nigeria away from economic collapse through what he described as bold and innovative reforms.

“We have assessed your performance and we are grateful for your vision and interventions. You have recovered Nigeria from the brink of collapse to a state of stability and survival,” Uzodinma said.

Governors from Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun and Kogi states attended the event, while the deputy governors of Borno and Kano were also present.

Earlier, Lagos State Governor, Babajide Sanwo-Olu welcomed his colleagues and thanked them for their support of the President’s administration, urging them to sustain the momentum behind ongoing reforms.