President Bola Tinubu explained that the Federal Government decided to remove fuel subsidies and abolish multiple foreign exchange rates to grow the economy and support national development. In a nationwide address on Sunday, Tinubu detailed the reasons behind these decisions amid ongoing protests against economic hardship.
He stated that Nigeria’s economy had been stagnant for decades due to misalignments that hindered growth. “Just over a year ago, our dear country, Nigeria, reached a point where we couldn’t afford to continue the use of temporary solutions to solve long-term problems for the sake of now and our unborn generations,” Tinubu said.
The president emphasized that the removal of fuel subsidies and the abolishment of multiple foreign exchange systems were necessary to eliminate the greed and profits that smugglers and rent-seekers made. He added that these actions stopped undue fuel subsidies extended to neighboring countries, which had weakened Nigeria’s economy.
“These decisions I made were necessary if we must reverse the decades of economic mismanagement that didn’t serve us well. Yes, I agree, the buck stops on my table. But I can assure you that I am focused fully on delivering good governance to the people,” he said.
Tinubu highlighted that his government had made significant strides in rebuilding the economy over the past 14 months. Aggregate government revenues had more than doubled, reaching over N9.1 trillion in the first half of 2024, compared to the same period in 2023. This increase was attributed to efforts at blocking leakages, introducing automation, and mobilizing funding creatively without additional burdens on the people.
ALSO READ [BREAKING] Tinubu begs Nigerians, urges dialogue [TEXT]
The president also noted a gradual increase in productivity in the non-oil sector, which was taking advantage of opportunities in the current economic environment. Additionally, he stated that the government had reduced the revenue spent on debt servicing to 68% from the previous 97% and cleared legitimate outstanding foreign exchange obligations of about $5 billion without adversely impacting programs.
Tinubu explained that this financial freedom allowed for more investment in essential social services like education and healthcare. He also announced that the state and local governments had received the highest allocations ever from the Federation Account, enabling them to fund critical projects.
The president mentioned several infrastructure projects underway, including the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway projects, which aim to create jobs and boost economic output. He also highlighted reforms in the oil and gas industry, which led to increased oil production and attracted foreign direct investments.
To address the country’s dependence on petrol and neglect of gas resources, Tinubu launched the Compressed Natural Gas (CNG) Initiative. This initiative aims to power the transportation sector and reduce costs, saving over N2 trillion a month previously spent on importing petrol and diesel. The government plans to distribute a million conversion kits to commercial vehicles at low or no cost.
Tinubu also discussed the government’s commitment to youth by setting up a student loan scheme, with N45.6 billion already processed for payment. He encouraged the youth to take advantage of this opportunity. Additionally, the administration established the Consumer Credit Corporation, with over N200 billion available to help Nigerians acquire essential products without immediate cash payments.
The president highlighted several programs aimed at empowering the youth and supporting small businesses. These include the Digital and Creative Enterprises (IDiCE) program, the Skill-Up Artisans Programme (SUPA), the Nigerian Youth Academy (NIYA), and the National Youth Talent Export Programme (NATEP). Over N570 billion had been released to states to expand livelihood support, benefiting 600,000 nano-businesses.
Tinubu stated that the administration had built 10 MSME hubs, creating 240,000 jobs, with plans for more hubs. He also mentioned the signing of the National Minimum Wage into law, raising the lowest-earning workers’ pay to at least N70,000 a month.
In the housing sector, Tinubu inaugurated the first phase of the Renewed Hope City and Estate project in Karsana, Abuja, with plans to build 100,000 housing units over three years. He directed the removal of tariffs and import duties on essential food items and medical supplies to reduce prices.
The president urged Nigerians not to be misled by misinformation and assured them that the government was working hard to deliver tangible results. He called for unity and cooperation to build a brighter future and emphasized the importance of maintaining peace, law, and order.
Tinubu concluded by emphasizing the importance of democratic governance and urging security operatives to maintain peace and human rights.
