President Bola Tinubu has said his administration plans to prioritise translating ongoing economic reforms into tangible improvements in the daily lives of Nigerians as citizens continue to grapple with the effects of subsidy removal and foreign exchange reforms.
In a nationwide broadcast to mark the third anniversary of his administration, the President acknowledged the hardship caused by the removal of the fuel subsidy and foreign exchange reforms, but insisted that the measures were necessary to stabilise the economy and prevent a deeper national crisis.
He was sworn in on May 29, 2023, and immediately declared the removal of the fuel subsidy — a decision that sent petrol prices up immediately and had an effect on food and transportation.
He promised that the government would continue efforts to keep food prices low, noting that prices had already dropped from their peak levels in 2023 and 2024.
Mr Tinubu also promised lower transportation costs as commercial vehicle operators convert from petrol engines to compressed natural gas and electric vehicles.
The President said when his administration assumed office in 2023, Nigeria was facing severe economic and structural challenges, including mounting fiscal pressures, unsustainable fuel subsidies, declining revenues, exchange-rate distortions, rising debt-servicing costs, insecurity, energy constraints and weakening public confidence in institutions.
President Tinubu said when his administration assumed office in 2023, Nigeria was facing severe economic and structural challenges, including mounting fiscal pressures, unsustainable fuel subsidies, declining revenues, exchange-rate distortions, rising debt-servicing costs, insecurity, energy constraints and weakening public confidence in institutions.
According to him, the country was spending as much as N18.4 billion daily on petrol subsidy payments at the peak of the regime, with over N4 trillion spent on subsidy in 2022 alone.
He also said multiple exchange-rate windows and forex arbitrage led to massive distortions, with the country losing more than N8 trillion within three years to speculative activities and rent-seeking.
“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis. The easy choices would have been politically convenient. But leadership demands courage, especially when the right decisions are difficult.
“Had we refused to act, our nation would have drifted towards fiscal breakdown, worsening poverty and severe economic uncertainty. Together, we chose reform over ruin and decisiveness over hesitation. We chose long-term national recovery over short-term comfort,” he said.
The President admitted that the reforms triggered a sharp rise in the cost of living and placed enormous pressure on families, workers and businesses, while many young Nigerians seeking jobs became discouraged.
“I remain deeply conscious of those sacrifices, and I assure you: your sacrifice has not been in vain,” he stated.
