President Bola Tinubu has reaffirmed his stance on the removal of the petrol subsidy, declaring that he has no regrets about the decision despite its impact on the cost of living and inflation.
Tinubu, during his first presidential media chat on Monday, defended the move, emphasizing that it was necessary to secure the country’s economic future.
“Nigeria was spending its future and was not investing,” Tinubu said. “We were spending the fortune of our future generations and deceiving ourselves. That reform was necessary. Why should we have expenditures we cannot fund with revenue?”
The president highlighted the importance of prudent resource management, saying, “We must teach management in all our programs and manage our resources. There is no justification for giving out fuel while allowing neighboring countries to benefit like Father Christmas. I don’t regret removing the subsidy—it was necessary. We cannot spend our future generation’s investments upfront.”
The removal of the subsidy, announced during Tinubu’s inaugural speech on May 29, 2023, caused a sharp increase in petrol prices, from N190 to over N900 per liter, resulting in inflation and a surge in the cost of living.
Mohammed Idris, the minister of information and national orientation, defended the president’s decision, stating that the economy would have been worse off if the subsidy had remained.
Adding to the defense, Wale Edun, the minister of finance and coordinating minister of the economy, revealed in October that the subsidy cost Nigeria approximately five percent of its gross domestic product (GDP).
Despite the challenges faced by citizens, Tinubu remains firm on the policy, insisting that it was a critical step toward ensuring Nigeria’s long-term economic stability.
