President Bola Tinubu has said the removal of fuel subsidy by his administration helped prevent Nigeria from “imminent bankruptcy” and is supporting the country’s economic recovery, as he hosted state governors in Abuja for Sallah celebrations and his administration’s third anniversary.
Tinubu made the remarks on Friday during a meeting with governors from across the country, including Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun and Kogi, alongside deputy governors from Borno and Kano.
He said the long-standing subsidy regime had become financially unsustainable, arguing that it consumed national resources while limiting investment in critical sectors such as infrastructure, agriculture and social services. According to him, its removal, though difficult, was necessary to stabilise public finances and restore economic balance.
Tinubu stated that Nigeria had faced legal and political pushback over the policy but maintained that the economy was now showing signs of improvement, with stronger macroeconomic indicators and renewed activity in agriculture, housing and infrastructure development.
He also credited ongoing reforms in foreign exchange management, fiscal policy and public investment for helping to rebuild investor confidence and improve long-term economic prospects.
Vice President Kashim Shettima praised the decision, describing it as a bold intervention in a sector he said had been weighed down by corruption and inefficiencies. He said the reforms represented a structural reset rather than routine governance adjustments.
On behalf of state governors, Kwara State Governor Abdulrahman Abdulrazaq, who chairs the Nigeria Governors’ Forum, said the subsidy removal had increased revenue allocations to states, enabling them to clear salary arrears, reduce debt pressure and expand development projects.
Imo State Governor and Progressive Governors Forum chairman Hope Uzodinma also commended the administration’s reforms, saying they had helped stabilise the economy and improve fiscal conditions at subnational levels.
Lagos State Governor Babajide Sanwo-Olu hosted the gathering and welcomed colleagues to the state for the celebrations, as discussions centred on cooperation between federal and state governments.
Tinubu assured that his administration would continue implementing reforms aimed at easing economic hardship, improving food security, expanding job creation and sustaining growth across key sectors.
