I saved Nigeria from imminent collapse by removing petrol subsidy – Tinubu

• The development immediately led to a surge in the price of the product and aggravated inflation across the board

President Bola Tinubu says his decision to remove subsidy on petrol is in the best interests of Nigeria and its people.

Speaking in Riyadh, Saudi Arabia, on Sunday as one of the panelists at the ongoing World Economic Forum (WEF), Tinubu disclosed that Nigeria would have gone bankrupt if he did not remove subsidy.

The WEF meeting focuses on Global Collaboration, Growth and Energy for Development.

The President said the subsidy was removed in order to place Nigeria on a sound economic footing that would usher in the desired growth and prosperity for the people.

Tinubu had announced the removal of the subsidy on May 29, 2023.

The development immediately led to a surge in the price of the product and aggravated inflation across the board.

Speaking on Sunday, President Tinubu said retention of petrol subsidy would have plunged the nation into economic and financial ruins.

He said “For Nigeria, we are immensely consistent with the belief that economic collaboration and inclusiveness is necessary to engender stability in the rest of the world.

“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth.

“It is going to be difficult, but the hallmark of leadership is taking difficult decisions at the time it ought to be taken decisively. That was necessary for the country”

While admitting that the removal of subsidy has had a crippling socio-economic ripple effect on the populace, Tinubu said plans and arrangements have been put in place to cushion the effect of the policy.

“Yes, there will be blowback, there is expectation that the difficulty in it will be felt by a greater number of the people, but once I believe it is their interest that is the focus of the government, it is easier to manage and explain the difficulties.

“Along the line, there is a parallel arrangement to really cushion the effect of the subsidy removal on the vulnerable population of the country. We share the pain across the board, we cannot but include those who are vulnerable.

“Luckily, we have a very vibrant youthful population interested in discoveries by themselves and they are highly ready for technology, good education committed to growth. We are able to manage that and partition the economic drawback and the fallout of subsidy removal.”