Tinubu: Nigeria’s economy was living on borrowed time — subsidy removal needed to avert it

• On May 29, 2023, Tinubu announced the removal of petrol subsidies, leading to increased petrol prices and higher costs of goods and services.
• The Central Bank of Nigeria later unified foreign exchange markets, devaluing the naira and exacerbating inflation, making essential services more expensive for Nigerians.

President Bola Tinubu has stated that Nigerians were living an illusion of prosperity before the fuel subsidy removal.

Tinubu made this statement at the combined convocation ceremonies of the Federal University of Technology Akure (FUTA).

The President, represented by the vice chancellor of the University of Ilorin, Professor Wahab Egbewole, said that his administration was not unaware of the consequences of the tough decision to remove the subsidy

He explained that the decision to remove the petrol subsidy and unify exchange rates was necessary to prevent the country’s economy from deteriorating further.

Although the subsidies aimed to support the poor, they ultimately benefited the wealthy, leaving average Nigerians vulnerable to economic instability.

“As you are all aware, we took over at a time when our economy was struggling due to massive debts from fuel and dollar subsidies,” Tinubu said.

He continued: “The subsidies aimed to support the poor and improve life for all Nigerians. However, the prosperity we thought we had was an illusion that could have led to total economic collapse if drastic measures weren’t taken urgently.”

“The need to secure our children’s future and prevent economic collapse led to the strategic decision to remove the fuel subsidy and unify exchange rates,” Tinubu added.

Tinubu assured Nigerians that his administration’s policies were yielding positive results, indicating economic recovery.

“The current challenges require patriotism, and I assure Nigerians that better days are ahead. After difficulties come prosperity. Brighter days are almost here,” Tinubu said.

The president called on the graduands to join hands together with his administration “to recover our lost glory and virtues.”

He also condemned the mass exodus of the youths leaving the country to seek “proverbial greener pastures,” observing that their action has led to brain drain in all sectors of the nation’s economy.