President Bola Tinubu has disclosed that fuel subsidies, along with the corruption-laden multiple foreign exchange windows, had long acted as a stranglehold on Nigeria, suffocating the nation’s prospects for decades.
In a national broadcast marking his second year in office on Thursday, Tinubu stated that both policies were no longer sustainable.
The New Daily Prime reported that the president had ordered the complete removal of fuel subsidies upon assuming office.
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He argued that for the federal government, as well as the state and local governments, to remain viable and capable of delivering essential services, it was necessary to eliminate both the subsidy regime and the flawed forex system.
Tinubu further explained that the economic conditions he inherited demanded a bold and visionary redirection of the country’s path.
“I immediately implemented two necessary policies to stop our country from further drifting into the precipice. While our administration has implemented the reforms to restore and reinvigorate our national economy and strengthen our social fabric as a strong and united country, I must thank my fellow citizens for your unrelenting support and belief in the grand vision we share to uplift our nation and renew our collective hopes and aspirations.
“We are halfway through the journey that began 24 months ago. Today, May 29, 2025, offers our administration the opportunity to share again how far we have gone and our progress in steering our country along the critical path of socio-economic development. When we embarked on this journey, propelled by a burst of hope and abiding faith in Nigeria’s unity and progress, I made a pledge before God and fellow countrymen and women to confront Nigeria’s challenges head-on by rebuilding trust, fostering prosperity, and restoring our nation’s economic health”, he said.
Tinubu affirmed that the economic reforms were yielding results and that the country was on track to becoming a stronger, more economically stable nation.
“Under our Renewed Hope Agenda, our administration pledged to tackle economic instability, improve security nationwide, reduce corruption, reform governance, and lift our people out of poverty. While implementing the reforms necessary to strengthen our economy and deliver shared prosperity, we have remained honest by acknowledging some of the difficulties experienced by our compatriots and families. We do not take your patience for granted.
Tinubu noted, “I must restate that the only alternative to the reforms our administration initiated was a fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging Naira, and an economy in a free-fall. Despite the bump in the cost of living, we have made undeniable progress. Inflation has begun to ease, with rice prices and other staples declining.
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“The oil and gas sector is recovering; rig counts are up by over 400% in 2025 compared to 2021, and over $8 billion in new investments have been committed. We have stabilised our economy and are now better positioned for growth and prepared to withstand global shocks. In 2025, we remain on track with our fiscal targets. Gross proceeds per barrel from crude oil are broadly aligned with our forecasts as we intensify our efforts to ramp up production. Our fiscal deficit has narrowed sharply from 5.4% of GDP in 2023 to 3.0% in 2024.
“We achieved this through improved revenue generation and greater transparency in government finances. In the first quarter of this year, we recorded over N6 trillion in revenue. We have discontinued Ways & Means financing, which has been a major contributor to high and sticky inflation. The NNPC, no longer burdened by unsustainable fuel subsidies, is now a net contributor to the Federation Account. We are also achieving fuel supply security through local refining.”
