President Bola Tinubu has disclosed the reason behind the removal of fuel subsidy in the country.
The Star recalls that Tinubu, on inauguration day, May 29, 2023, announced the removal of subsidy on petroleum products.
“Subsidy is gone,” Tinubu declared during his inaugural address at Eagle Square in Abuja, shortly after he was sworn in as the 16th President of Nigeria.
He stated that there would no longer be a petroleum subsidy regime as the current 2023 budget he glimpsed does not contain it, adding that funds for subsidy will be diverted to other things like public infrastructure, education, health care, and jobs.
Speaking in a national broadcast on the ongoing nationwide protest against economic hardship in the country on Sunday, August 4, 2024, Tinubu described the removal of fuel subsidy as a painful decision by his administration.
President Tinubu said he took the decision to remove fuel subsidy and abolish multiple foreign exchange rates because they had impeded the economic development and progress of the nation.
He stated: “For decades, our economy has remained anaemic and taken a dip because of many misalignments that have stunted our growth. Just over a year ago, our dear country, Nigeria, reached a point where we couldn’t afford to continue the use of temporary solutions to solve long-term problems for the sake of now and our unborn generations.
“I, therefore, took the painful yet necessary decision to remove fuel subsidies and abolish multiple foreign exchange systems which had constituted a noose around the economic jugular of our Nation and impeded our economic development and progress.
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“These actions blocked the greed and the profits that smugglers and rent-seekers made. They also blocked the undue subsidies we had extended to our neighbouring countries to the detriment of our people, rendering our economy prostrate.
“These decisions I made were necessary if we must reverse the decades of economic mismanagement that didn’t serve us well. Yes, I agree, the buck stops on my table. But I can assure you that I am focused fully on delivering governance to the people – good governance for that matter.
“In the past 14 months, our government has made significant strides in rebuilding the foundation of our economy to carry us into a future of plenty and abundance.
“On the fiscal side, aggregate government revenues have more than doubled, hitting over N9.1 trillion in the first half of 2024 compared to the first half of 2023 due to our efforts at blocking leakages, introducing automation, and mobilising funding creatively without additional burden on the people.
“Productivity is gradually increasing in the non-oil sector, reaching new levels and taking advantage of the opportunities in the current economic ambience.”
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