Fuel Subsidy Removal Saved Nigeria From Bankruptcy — Tinubu

President Bola Tinubu, on Friday, said the removal of fuel subsidy by his administration saved the country from imminent bankruptcy and laid the foundation for the gradual recovery of the nation’s economy.

He spoke when he hosted state governors who came to celebrate with him the Sallah and the third anniversary of the administration.

In attendance were the governors of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi States, as well as the deputy governors of Borno and Kano.

In a statement by his spokesman, Bayo Onanuga, President Tinubu acknowledged that the decision to remove the subsidy was difficult and painful for many Nigerians, but stressed that it became necessary to rescue the country from fiscal collapse and restore economic stability.

According to the President, the country had spent enormous resources for years on unsustainable subsidy payments that benefited only a few while denying critical sectors of the economy the investments they needed.

“It was challenging at the time, but we survived. We face litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming.

“Today, I was watching some clips of the Sokoto -Badagry axis. Imagine how many dams on that corridor for irrigation, for farm land, for electricity. Well, many of you have survived and promoted the perseverance of many of our people, asking them to trust this government, and you have built that trust around one person: my leadership. I thank you very much,’’ the President said.

President Tinubu also thanked Nigerians for their patience, resilience and understanding, assuring them that the difficult phase was gradually yielding positive outcomes.

The President said ongoing reforms in infrastructure, agriculture, social investment, foreign exchange management and fiscal discipline were beginning to restore investor confidence and improve economic prospects.

President Tinubu also commended the Governors for their cooperation, support and commitment to national development, noting that the partnership between the federal and state governments played a vital role in stabilising the economy.

“I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries, no more. You kept the spirit, you kept the hope. You persuaded our people to be patient and endure these three years of painful reform, during which we put the economy on a reset. Today, the benefits are showing.

“The economy has recovered. Macroeconomic indices are doing very well. Construction is ongoing on roads and infrastructure; the ones abandoned have been rehabilitated.

“The housing industry is coming on very well. Agriculture will prosper again. We will achieve food sovereignty if we utilise the land that is in your possession and in your various states effectively,’’ he said.

The President assured Nigerians that his administration would continue to implement people-oriented policies aimed at reducing hardship, creating jobs, strengthening food security and ensuring inclusive economic growth.

Vice President Kashim Shettima commended the President’s doggedness, tenacity and courage in confronting corruption in Nigeria’s oil industry in the name of the fuel subsidy.

“Your Excellency, Mr President, this is the essence of your leadership. You did not come to power in the season of ease. You came at a time when the house required more than a canter. It required a builder with the courage to examine the foundation you inherited.

“In that defining hour, you choose not to postpone the surgery. You choose not to massage the wound. You choose to confront the contradictions that have held this country hostage for 50 years; that is the miracle of your courage.

“What you have done is not simply to administer a government. You have begun the difficult work of re-engineering a nation. You have reminded us that the reform is not a bank; it is a battlefield. It is not a picnic for the chicken-hearted. It is a covenant with the future,’’ VP Shettima said.

Kwara State governor, Abdulrahman Abdulrazaq, who spoke on behalf of the Nigeria Governors’ Forum (NGF), commended the policy initiatives of President Tinubu, which significantly enhanced the capacity of subnational governments to meet their obligations and execute critical developmental projects.

Abdulrazaq stated that the removal of the fuel subsidy and fiscal reforms led to an increase in revenue accruing to states, enabling them to offset outstanding salaries, pensions, and other financial commitments, as well as to embark on landmark infrastructural and social investment programmes.

“I think the nation was shocked by the audacity of Mr President to implement that serious policy, but today, it benefited immensely from that policy.

“Many states were subject to issuing bonds and borrowing money. Today, states are not going to borrow money; they’re not going to issue Bonds. In fact, we’re reducing our debt. I urge your Excellency to let them discuss moving the minimum wage to a minimum of N100,000,’’ he said.

The chairman of the Progressive Governors Forum (PGF) and Imo State governor, Hope Uzodinma, thanked the President for stabilising the nation’s economy through bold reforms.

“We are the frontline beneficiaries of the innovative approach you brought to bear in governance. We came to join you in thanking Almighty God who made this thing possible. You have virtually recovered Nigeria from the brink of collapse to a state of stability and survival.

“Your Excellency, we, the field officers at the subnational level, are indeed very grateful. We have assessed your performance, Mr President, and I’m happy to announce that we have scored it a 100 per cent. We thank you for the genius you are, the fatherly role you have played, your interventions in terms of our needs and your vision for the country, moving forward,’’ Uzodinma said.

Governor Babajide Sanwo-Olu had earlier welcomed his colleagues to Lagos Sate to celebrate Sallah with the President. He also thanked them for their continued support for the President and urged them to sustain the momentum.