President Bola Tinubu stated on Sunday that Nigeria would have gone bankrupt if his administration had not stopped the payment of fuel subsidy.
He stated that, despite the economic consequences, the strategy was in Nigeria’s best interests.
Tinubu addressed the Special World Economic Forum in Riyadh, Saudi Arabia.
Tinubu enforced the termination of petrol subsidies when he took office in May, as directed by Muhammadu Buhari’s immediate predecessor.
He claimed the measure would save the government money on infrastructure growth.
However, this decision caused collateral volatility in the value of the naira and added misery to Nigerians as food prices skyrocketed.
At the World Economic Forum, Tinubu claimed that abolishing the petrol subsidy was a “necessary action for my country not to go bankrupt” and to “reset the economy towards growth.”
Recognising the problems faced by the decision, the Nigerian leader informed delegates that his government had made parallel plans to mitigate the impact on vulnerable residents.
“Yes, there have been drawbacks. Yes, there was the expectation that a greater number of people would feel the difficulty, but, of course, I believed it was their interest that was the focus of government.
“It is easier to manage and explain the difficulties, but along the line, there was a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country.
“We shared the pain across the board. We cannot help but include those who are very vulnerable. Luckily, we have a very vibrant youthful population interested in discoveries by themselves, highly ready for technology, good education, and committed to growth,” Tinubu explained.
He also stated that the unification of naira exchange rates was “necessary” to “remove the artificial element of value in our currency.”
He stated that the action allowed the local currency to find its level, “compete with the rest of the world’s currencies, and remove arbitrage, corruption, and opaqueness.”
Tinubu also stressed the need for stability and economic development in West Africa, adding, “We need to trade with one another, not fight each other.
“It is very, very necessary and compulsory for us to engender growth, stability, and economic prosperity for our people.”
Tinubu issued a call on Sunday to “pay attention” to the core causes of poverty and instability in Africa’s Sahel area.
Tinubu also claimed that establishing regional stability and progress would require long-term economic collaboration and inclusion.
“The rest of the world needs to look at the fundamentals of the problem—not just ordinary geopolitically, but it has to go to the root.
“Has the world paid attention to the poverty level of Sahel and the rest of ECOWAS?
“Have they helped with the infusion of capital and paid adequate attention to the exploitation and opportunities availed by the mineral resources available?” Tinubu queried when he fielded questions during a panel session at the Special World Economic Forum in Riyadh, Saudi Arabia.
While urging larger economies to fully contribute to the region’s advancement and prosperity, he also emphasised global collaboration and inclusion as key drivers of capital formation and economic opportunity in Africa.
