Real reason we remove fuel subsidies – Tinubu

Ball President Ahmed Tinubu has described the elimination of fuel subsidies as a necessity and difficult decision, explaining that they were carried out to stabilize the economy and direct public funds to the more impact sectors.

The President stated this on Monday at the opening of the National Conference on Public Accounts and Fiscal Governance, organized by the Senate Public Account Committee and the House of Representatives. He was represented at the event by the State Minister for Finance, Dr. Doris Uzoka-Anite.

“In 2022 alone, Nigeria spent more than N4 trillion for fuel subsidies, the amount greater than the allocation of our capital expenditure,” he said. “This is not only not fiscal but also unfair. Disprudence subsidies benefit the rich, encourage smuggling, and foster inefficiency. That is unfair or strategic.”

He added that since the transfer of subsidies, the administration had re -relocated funds for social safety nets, increased public transportation, and major infrastructure projects.

“The most important thing,” said the President, “We have strengthened our fiscal buffer, making Nigeria more resilient to external shocks.”

Tinubu also discussed the long -standing structural challenges, citing inefficiencies, fiscal leaks, and excessive economic dependence on oil income. He noted that the new reform was aimed at fixing this problem and building a more sustainable economic foundation.

“We are not here to think about the past,” he said. “We are here to map new courses.”

He highlighted the new tax law -this was applied as part of the government’s reform agenda, said that this law was designed to expand the tax base, especially by integrating the informal sector, streamlining compliance for small and medium businesses (SMEs), digitizing revenue collection to curb leaks, and align various tax regimes to improve the business environment.

According to the President, “This tax reform is not only an economic need; they are a necessity of government that lay the foundation for an independent economy.”

He also quoted initiatives such as national credit guarantee companies, which he said would support local production, empower SMEs, and increase non-miny exports. These efforts, said Tinubu, are the key to shifting Nigerian economic narratives from one of the dependences to one of the resilience and innovation.

“These efforts exceed mere economic metrics,” he said. “They are about creating employment, encouraging innovation, building economic resilience, and strengthening national security and long -term stability.”

In the monetary policy, the President praised the Central Bank of Nigeria (CBN) because of his role in stabilizing Naira and curbing inflation, emphasizing the increase in coordination between fiscal and monetary authorities.

“Now there is a better synergy between the two arms, and we are determined to reduce inflationary pressure by overcoming structural congestion, especially in the food supply chain,” he said.

President Tinubu concluded by urged the National Assembly, especially the Public Account Committee, to uphold their constitutional mandate with “integrity, courage, and independence.”

“Supervision is not a political tool; that is a patriotic task,” he said. “Every project must be guided by the value of money, and each budget must reflect the new priority of our people.”