President Bola Tinubu of Nigeria has defended the removal of the petrol subsidy in May 2023, stating that the decision was aimed at freeing up resources for critical infrastructure investments.
Speaking at the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference in Abuja, Tinubu, represented by Vice President Kashim Shettima, acknowledged the short-term pain caused by the subsidy removal but emphasized its long-term benefits.
“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services,” Tinubu said.
Tinubu outlined his administration’s commitment to reforming Nigeria’s macroeconomic environment by reducing inflation, stabilizing the foreign exchange market, and improving fiscal management. He stressed the need to upgrade infrastructure through public-private partnerships, focusing on roads, railways, and energy projects to reduce transportation costs and improve market access.
The removal of the petrol subsidy, which resulted in a spike in fuel prices from around N200/litre to over N1,000/litre, has faced criticism from various quarters, including labor unions, as millions of Nigerians grapple with a high cost of living and inflation.
