President Bola Ahmed Tinubu has asserted that the decision to remove the fuel subsidy has significantly improved Nigeria’s financial standing, leading to a marked increase in allocations to state governments.
Speaking at the All Progressives Congress (APC) maiden national caucus meeting in Abuja, the president confidently stated that governors could testify to receiving more funding to support their states since the subsidy was scrapped.
“There is no way Nigeria could have survived the continuation of the fuel subsidy. There is no way; today, I can beat my chest and each of the governors here that allocations to the states are triple,” President Tinubu said.
Tinubu’s remarks came as he highlighted the critical importance of his bold decision to remove the fuel subsidy on his first day in office.
He explained that the move had not only helped stabilise the nation’s economy but also ensured that local governments now had the necessary resources to function effectively.
Additionally, the president pointed out that the funds freed up by the subsidy removal had been redirected towards supporting the Nigerian Education Loan Fund (NELFUND), which provides financial aid to students pursuing higher education.
In his address, Tinubu stressed that the removal of the subsidy was essential for Nigeria to avoid an economic collapse and for the country to build a stronger, more sustainable future.
He also noted the broader implications for Africa’s growth, highlighting the global lessons that were reinforcing Nigeria’s resolve to reshape its economic trajectory.
His words reflected a strong belief in the potential for Nigeria to chart its own course and contribute to the continent’s development:
“I like what is happening around the world. It’s teaching us that Nigeria can build itself and help Africa grow,” Tinubu added.
The president’s comments serve to underline his administration’s ongoing efforts to reorient Nigeria’s fiscal policies, despite the challenges posed by rising fuel prices and inflation.
While the subsidy removal remains a contentious issue among some Nigerians, the government is keen to showcase the long-term benefits, including greater financial autonomy for state governments and investments in key sectors such as education and local governance.
