President Bola Tinubu has framed the removal of fuel subsidies as a bold step to shift Nigeria from a system that favoured a few to one that benefits all citizens.
In his Independence Day address on Wednesday, October 1, marking 65 years of nationhood, Tinubu reflected on the economic realities he inherited, calling the country’s finances “near collapse” and stressing the need for decisive action.
“As a new administration, we faced a simple choice: continue business as usual and watch our nation drift, or embark on a courageous, fundamental reform path. We chose the path of reform. We chose the path of tomorrow over the comfort of today,” he said.
He explained that fuel subsidies and multiple foreign exchange rates had long created opportunities for a small elite to prosper while the majority of Nigerians saw little benefit.
“In resetting our country for sustainable growth, we ended the corrupt fuel subsidies and multiple foreign exchange rates that created massive incentives for a rentier economy, benefiting only a tiny minority,” Tinubu said.
The President highlighted that the savings from subsidy removal are being redirected to sectors that directly touch citizens’ lives, including education, healthcare, agriculture, infrastructure, and security.
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“Following the removal of the corrupt petroleum subsidy, we have freed up trillions of Naira for targeted investment in the real economy and social programmes for the most vulnerable, as well as all tiers of government,” he said.
Acknowledging the initial challenges, Tinubu said the sacrifices were necessary to prevent the nation from slipping into deeper economic turmoil.
“I have always candidly acknowledged that these reforms have come with some temporary pains.
“However, the alternative of allowing our country to descend into economic chaos or bankruptcy was not an option. Our macro-economic progress has proven that our sacrifices have not been in vain,” he said.
The subsidy removal, first announced during his May 2023 inauguration, initially caused fuel shortages and price hikes, sparking public debate.
But Tinubu said the policy is already freeing resources for strategic investments aimed at improving living standards for the majority.
By framing the subsidy removal as a means to build a more inclusive and resilient economy, Tinubu positioned the reform as not just an economic decision, but a long-term strategy to deliver tangible benefits to ordinary Nigerians and create a stronger, self-reliant nation.