President Bola Tinubu has stated why the removal of fuel subsidy is necessary. He had announced the removal of fuel subsidy on the very day he was inaugurated into office with the popular “subsidy is gone” speech.
Speaking at the ongoing World Economic Forum in Riyadh, Saudi Arabia on Sunday this morning, Tinubu insisted that his administration’s decision to remove the petrol subsidy was very necessary to prevent the country from going bankrupt.
The action, however, made prices of commodities to rise to the roofs, increasing hardship in the country which has made some of his critics condemn the subsidy removal as a policy not well thought out.
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“For Nigeria, we are immensely consistent with belief that the economic collaboration and inclusiveness is necessary to engender stability in the rest of the world.
“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth.
The Nigerian leader admitted the difficulty associated with his decision to jettison the policy which has allowed Nigerians to purchase petrol at cheaper rates for years but said that he was convinced it was in the best interest of the people.
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“It is going to be difficult, but the hallmark of leadership is taking difficult decision at the time it ought to be taken decisively. That was necessary for the country. Yes, there will be blowback, there is expectation that the difficulty in it will be felt by greater number of the people, but once I believe it is their interest that is the focus of the government, it is easier to manage and explain the difficulties.
“Along the line, there is a parallel arrangement to really cushion the effect of the subsidy removal on the vulnerable population of the country. We share the pain across board, we cannot but include those who are vulnerable.
“Luckily, we have a very vibrant youthful population interested in discoveries by themselves and they are highly ready for technology, good education committed to growth. We are able to manage that and partition the economic drawback and the fallout of subsidy removal.”
