President Bola Tinubu has explained that the removal of the petrol subsidy in May 2023 was a strategic decision aimed at freeing up resources for critical investments in infrastructure and social services.
He made this statement while declaring open the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference in Abuja.
Tinubu acknowledged that the removal of fuel subsidies has caused short-term pain, but emphasized that it is designed to yield long-term benefits.
He highlighted the need for frequent adjustment of the monetary policy rate to curb inflation and foster a more market-oriented exchange rate system.
The President identified several challenges facing the economy, including high inflation, rising costs of living, unemployment, infrastructure deficits, and the effects of global economic shifts.
However, he also emphasized that these challenges present opportunities for growth and development.
Tinubu reiterated his administration’s commitment to strengthening infrastructure development to support economic growth.
He highlighted investments in roads, railways, and energy projects through public-private partnerships to reduce transportation costs and improve market access.
The removal of petrol subsidy has been a controversial decision, with many Nigerians criticizing it for exacerbating the high cost of living and inflation.
The pump price of petrol jumped from around N200/litre to over N1,000/litre, affecting over 200 million residents.
Despite the criticism, Tinubu highlighted that his administration has taken bold steps to reform the macroeconomic environment, focusing on restoring confidence in the Nigerian economy.
Measures aimed at reducing inflation, stabilizing the foreign exchange market, and improving fiscal management are underway.
