Tinubu: Fuel Subsidy Removal Saved Nigeria from Bankruptcy

President Bola Tinubu announced that the removal of fuel subsidies has prevented Nigeria from facing imminent bankruptcy and is essential for the country's economic recovery. This disclosure was made in a statement issued on Friday by Bayo Onanuga, the special adviser to the president.

Tinubu acknowledged that while the policy has attracted significant criticism and caused public hardship, it was a necessary decision to stabilize Nigeria's public finances and prevent fiscal collapse. The president emphasized that the removal of the subsidy is part of a broader strategy to reset the economy and implement serious reforms.

Vice President Kashim Shettima defended the subsidy removal, describing it as a courageous decision to address long-standing distortions in the corrupt fuel subsidy regime. The reform has led to an immediate increase in fuel prices, transport costs, and food inflation, putting pressure on household incomes and small businesses.

However, Tinubu noted that the ongoing economic reforms are aimed at reducing states' dependence on federal government intervention for recurrent obligations.