President Bola Tinubu has defended the removal of fuel subsidy and foreign exchange reforms introduced by his administration, saying the policies saved Nigeria from economic breakdown.
In a statement issued on Friday, May 29, to commemorate his third year in office, Tinubu said petrol subsidies and multiple exchange-rate windows had weakened Nigeria’s economy before his administration took office.
According to him, the country spent huge resources maintaining fuel subsidies while losing trillions of naira to exchange-rate distortions and speculative practices.
“At the height of the subsidy regime, Nigeria was spending as much as ₦18.4 billion daily to sustain petrol subsidies, over ₦4 trillion in 2022 alone, resources that could have been invested in roads, healthcare, education, housing, and critical infrastructure,” Tinubu said.
He also blamed multiple foreign exchange windows for encouraging rent-seeking and arbitrage.
“Multiple exchange rate windows and forex arbitrage created massive distortions, with Nigeria losing more than ₦8 trillion over three years to rent-seeking and speculative practices,” he stated.
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The President argued that urgent action became unavoidable to stop the country from slipping into a deeper economic crisis.
“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis,” he said.
Tinubu maintained that avoiding reforms would have pushed Nigeria towards greater poverty and fiscal instability.
“Had we refused to act, our nation would have drifted toward fiscal breakdown, worsening poverty, and severe economic uncertainty,” he stated.
Although he acknowledged the hardship caused by the reforms, Tinubu said the economy was showing signs of recovery, citing improved public finances, growing investor confidence and infrastructure expansion.
He said, “We chose reform over ruin and decisiveness over hesitation. We chose long-term national recovery over short-term comfort.”
The President urged Nigerians to remain hopeful, insisting that the country was rebuilding on stronger economic foundations.