Tinubu says petrol subsidy removed to reset Nigeria’s economy

Nigeria’s President Bola Tinubu says his administration removed petrol subsidy to put Nigeria on the path of economic growth. 

 

 

Tinubu highlighted this during a high-level panel session at the World Economic Forum (WEF) Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday, according to a statement released by his spokesperson, Ajuri Ngelale. 

 

 

 

Ngelale quoted the president as saying that he had to take tough but essential decisions like removing fuel subsidy – with its attendant perils – to reposition Nigeria’s economy. 

What Tinubu said, 

• “Concerning the question of subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt and to reset the economy and the pathway to growth. It was going to be difficult, but the hallmark of leadership is making difficult decisions when they need to be made.
• “That was necessary for the country. Yes, there have been drawbacks. Yes, there was an expectation that the difficulty would be felt by a greater number of people. But, of course, it was the interest of our people that was the primary focus of the government.
• “Along the line, there was an arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country. We shared the pain across the board. We cannot but include those who are very vulnerable.
• “Luckily, we have a very vibrant youth population interested in innovation and highly ready to leverage technology and good education, and they remain committed to growth. We were able to manage that and partition the economic drawback and the fallout of the subsidy removal equally; engendering transparency, accountability, and fiscal discipline for the country. And that, to me, is most important, which is focusing on what direction we should head in. I will pursue that rigorously.”

 

Tinubu explained that the government under his leadership is managing the nation’s currency and effectively removing corruption-laden arbitrage. 

• “The currency management was necessary, equally to remove the artificial element of value in our currency. Hence, our local currency finds its level and competes with the rest of the world’s currencies as we remove corrupt arbitrage and opaqueness.
• “That, we did. At the same time, that is a two-engine problem in a very turbulent situation for the government. But we are able to manage that turbulence because we prepared for this with inclusivity in governance and rapid communication with the public,” the president said.
• He said “collaboration and inclusiveness” are two factors essential for the progress of Africa and the rest of the world.
• “The capital formation that is necessary to drive the economy, agriculture, ensure food security, innovation, and technological advancement must be an inclusive programme of the entire world. No one should be left behind.
• “I am glad the world is recognizing the need for cooperation, and that with the type of population growth that Africa is experiencing; the diversity of its resources must be married with economic opportunity. We must collaborate to achieve that,” President Tinubu said.

The president also explained his role in stabilizing the West African region amid several coup d’etat. 

According to him, he eased sanctions on defaulting West African countries because he believes in trading and brotherliness. 

He urged global leaders to pay attention to the developments in the Sahel and collaborate with their African counterparts to arrive at solutions to unsavoury developments on the continent. 

He said,  

• “We are encouraging the entire world to pay attention to the Sahel and the other countries around us. As the Chairman of ECOWAS Authority of Heads of State and Government, I have wielded the big influence of Nigeria to discourage all unconstitutional change of government.
• “Equally, we have eased the sanctions. We need to trade with one another; not fight each other. It is very necessary and compulsory for us to engender growth, stability, and economic prosperity for our people in West Africa.
• “The rest of the world needs to look at the fundamentals of the problem, not just geopolitically, but at the roots. Has the world paid attention to the poverty level in the Sahel and the rest of ECOWAS? Have they facilitated the infusion of capital and paid adequate attention to ensuring the exploitation of resources and the creation of opportunities presented by the mineral resources available?
• “Are we going to play a big-brother role in a talk shop without taking necessary actions? We just have to be involved in the promotion and prosperity of that region in order to see peace, stability, and economic growth.

More insights

• According to the statement, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, was quoted as commending President Tinubu for offering insights into executing strategic economic reforms.
• At the session, the President of Rwanda, Paul Kagame, was also quoted as saying he was happy that the Nigerian President spoke on the need for inclusive economic growth, adding that Africa is at the stage for an expanding middle-class.