President Bola Ahmed Tinubu has strongly defended his administration’s decision to remove fuel subsidies, declaring that the bold move prevented Nigeria from sliding into economic bankruptcy.

Speaking during a high-level meeting with economic stakeholders on Friday, President Tinubu maintained that the subsidy regime had become unsustainable and was draining the nation’s resources at an alarming rate.

“The removal of the fuel subsidy saved Nigeria from bankruptcy,” Tinubu declared. “We inherited a system that was bleeding the country dry. Continuing with it would have led us straight into fiscal collapse.”

The President explained that the subsidy payments had reached over N4 trillion annually in recent years, consuming a massive portion of government revenue that could have been channelled into infrastructure, healthcare, and education. He noted that the funds saved are now being redirected toward critical developmental projects under his administration’s Renewed Hope Agenda.

Tinubu acknowledged the short-term pains experienced by citizens due to the policy but insisted the long-term benefits would outweigh the difficulties.

“We took the hard but necessary decision for the survival of our economy,” he said. “Today, we are seeing increased revenue, better targeting of social investments through programmes like the Conditional Cash Transfer and student loans, and a more transparent petroleum sector.”

The fuel subsidy removal in May 2023 was one of the first major policy decisions of the Tinubu administration and remains one of its most controversial. While it triggered a sharp rise in fuel prices, inflation, and cost of living, the government argues it has freed up resources and attracted greater private sector investment into the downstream oil sector.

Some economic analysts have supported the President’s position, noting that Nigeria’s fiscal deficit has narrowed and foreign reserves have strengthened since the reform. However, critics argue that the removal was poorly sequenced, lacking adequate social safety nets, and has contributed significantly to the current economic hardship faced by millions of Nigerians.

President Tinubu reiterated his commitment to implementing further reforms to stabilise the economy and ease the burden on citizens.