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Tinubu reveals benefits of Subsidy Removal

President Bola Ahmed Tinubu - GCFR at the National Assembly

President Bola Tinubu defended the removal of petrol subsidies during his address at the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference held in Abuja.

He stated that the move, though difficult in the short term, was aimed at reallocating budgetary resources towards critical infrastructure and social services.

This measure is part of broader efforts to stabilize the economy, curb inflation, and promote a market-driven exchange rate system.

Represented by Vice President Kashim Shettima, Tinubu highlighted key challenges such as inflation, unemployment, and infrastructure deficits, while emphasizing the opportunities they present for growth.

He reiterated his administration’s commitment to reforming the macroeconomic environment, restoring confidence in the Nigerian economy, and improving fiscal management.

Tinubu also pointed out the government’s focus on infrastructure development through public-private partnerships in areas like roads, railways, and energy projects to reduce transportation costs and improve market access.

Despite the benefits highlighted, the removal of the petrol subsidy on May 29, 2023 has drawn widespread criticism due to its impact on the cost of living, with the pump price of petrol soaring from around N200/litre to over N1,000/litre, exacerbating inflation and economic hardship for many Nigerians.

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