Tinubu Defends Fuel Subsidy Removal, Tax Reforms As Necessary Steps To Stabilise Economy
- +Deji Elumoye in Kigali, Rwanda
President Tinubu says painful reforms introduced by his administration were necessary to stabilise Nigeria’s economy and secure future growth.
President Tinubu says painful reforms introduced by his administration were necessary to stabilise Nigeria’s economy and secure future growth.
President Bola Tinubu on Friday strongly defended the removal of fuel subsidy and the unification of the foreign exchange market introduced at the start of his administration in 2023, describing both measures as painful but necessary steps taken to keep Nigeria’s economy afloat.
Speaking during an interview session on the second day of the Africa CEO Forum in Kigali, Rwanda, the President likened the hardship associated with the reforms to the pains of childbirth, insisting that temporary sacrifices would ultimately yield long-term benefits for Nigerians.
“It is difficult, it is painful, but it is just like the human reproduction process. A woman carries a pregnancy, enjoys the pain of labour, and has a very big smile when she sees a live child,” Tinubu said.
The President argued that sustaining the old subsidy regime would have amounted to mortgaging the future of unborn generations.
“It is a fake life to think you can, in a global economy, continue the subsidy that is wasteful. It’s an encouragement to falsification of papers, smuggling, and that is a very critical situation for the country,” he stated.
Tinubu recalled that before the reforms, many states across the federation struggled to meet basic obligations, including the payment of workers’ salaries.
“Of the 36 states, 27 of them were unable to pay the salaries of the workers. Where is the money? You are oil producing, you are earning, you are given fuel, you have no refinery that is functional. It is not possible to continue that trend,” he said.
Projecting ahead to a possible second term in office after the 2027 elections, Tinubu said the first two years of another administration under his leadership would be focused on “more work” and deeper reforms.
“Do more work. More challenges are there. The world won’t wait for anybody. You have to continue to reset and rethink, challenge the intellectual curiosity of you as a government,” he said.
According to the President, the philosophy guiding his administration is rooted in decisive leadership and the courage to take difficult decisions in the interest of the people.
“The hallmark of a transformative leader is the ability to take decisions, do what you’ll do, at the time it has to be done, on behalf of the people,” he added.
Tinubu also defended taxation as a critical tool for development, insisting that citizens who desire better infrastructure and social services must be willing to contribute through taxes.
“Nobody wants to pay taxes ordinarily. Taxation is not friendly to the wealthy, to the middle class, and to the poor. Every human being expects development, but the question they don’t answer is, how do you pay for it?” he asked.
The President argued that paying taxes remains a civic responsibility necessary for sustainable national development and social protection.
“A citizen that pays taxes is a citizen, whether corporate or individual,” he said.
Highlighting what he described as early gains from the reforms, Tinubu said Nigeria’s economy had become more stable and predictable, enabling businesses and households to plan more effectively.
“Today there is a very bright light at the end of the corner; the economy is stable, the Naira is stable, predictable, planners can do a reasonable budget, they can plan their lives well,” he said.
The President disclosed that the government was implementing direct cash transfers to vulnerable households while also supporting education through grants and allowances for indigent students.
“For those students ordinarily who would stay out of school because their parents cannot afford school fees, they are now in school. I’m even giving them allowances and upkeeps for their school,” he stated.
Tinubu also defended the administration’s support for local industries, citing the Dangote Refinery and BUA Group as examples of indigenous enterprises deserving government backing.
According to him, the government approved the sale of crude oil to the Dangote Refinery in Naira to ease operational bottlenecks and reduce pressure on foreign exchange.
“You don’t have to go through letter of credit and bureaucracy and make foreign exchange difficult for him. Give it to him in Naira,” he said.
The President further justified the ongoing Lagos-Calabar Coastal Highway project, describing it as part of a broader national integration and economic inclusion agenda capable of unlocking tourism and investment opportunities across Nigeria’s coastline.
On national unity, Tinubu urged Nigerians to see the country’s diversity as a strength rather than a source of division.
“All of us together as Nigerians must be patriotic to understand that you have no control where you are born. Your parents could be Igbo, my parents could be Yoruba, you have no control of that. Where you find yourself is your home. This country is ours. We must build it together,” he said.
The President also stressed the importance of regional collaboration and pragmatic diplomacy in addressing security and economic challenges across West Africa and the African continent.
“In ECOWAS, Nigeria is a big brother; in Africa, we are the fat lady. We must sing the tune, we must sing the right tune for others to pay attention to,” Tinubu stated.
Deji Elumoye in Kigali, Rwanda
