Tinubu defends economic reforms at Africa CEO Forum in Kigali

President Bola Tinubu on Friday defended his administration’s economic reforms, saying the removal of fuel subsidy and other policy measures were necessary to rescue Nigeria from economic collapse and place the country on a path of long-term stability.

Speaking during a session at the Africa CEO Forum in Kigali, Rwanda, the Nigerian president acknowledged that the reforms have been painful for many Nigerians but argued that continuing with what he described as wasteful subsidy regimes would have worsened the country’s financial situation.

“The reform is a very difficult decision, but necessary for the country,” President Tinubu said.

He added, “We cannot continue to spend our future generations’ endowment before they are born. It is necessary to reset, recalibrate and reform the economy.”

The president said Nigeria was facing severe fiscal pressures before the reforms were introduced, noting that many states struggled to meet basic obligations, including salary payments.

“States, of the 36 states, 27 of them were unable to pay salaries of workers,” he noted.

According to him, subsidy payments encouraged corruption, smuggling and falsification within the petroleum sector while placing enormous pressure on public finances.

“It is difficult, it is painful,” he said, comparing the process to childbirth, where hardship eventually gives way to relief.

He also defended his administration’s tax reforms, arguing that sustainable development cannot happen without citizens and businesses contributing through taxation.

“You want a very good highway, but you don’t want it to go through your land. You want a good hospital, and you don’t want to pay taxes. How do you develop?” he asked.

Mr Tinubu said taxation remains essential for infrastructure development, healthcare, education and social support programmes.

“Nobody wants to pay taxes ordinarily. But how do you protect the future of the children? How do you research and develop?”

He highlighted that his administration has continued social intervention programmes targeted at vulnerable households and students unable to afford school fees.

President Tinubu explained that, despite criticism and public backlash following the reforms, his government remained focused on implementing difficult decisions it considered necessary.

“I stopped reading newspapers and commentary because I knew I was going to get a big pushback, and I did. But we made the curve. Today, there is a very bright light at the end of the corner. The economy is stable. Nigeria is stable and predictable.”

On industrial policy, Mr Tinubu said his administration is prioritising support for local businesses and domestic production rather than relying heavily on imports.

He cited ongoing infrastructure projects, including the Lagos-Calabar coastal highway, as part of broader efforts to stimulate economic activities, tourism and local manufacturing.

According to him, materials being used for the road project, including cement and steel, are being sourced locally to reduce pressure on foreign exchange.

“My philosophy is Nigeria first,” the President noted.

He also defended the government’s support for major local investors such as Dangote and BUA Group, saying large businesses should be encouraged because of their capacity to create jobs and drive industrial growth.

President Tinubu noted that Nigeria also remains committed to strengthening regional partnerships and security cooperation across West Africa and the continent.

“You can’t operate the world in isolation,” he said, stressing the need for pragmatic partnerships with neighbouring countries and global allies.

He maintained that Nigeria still occupies a leading position within the region despite growing security and geopolitical challenges.

“Nigeria is still there,” he said. “Nigeria is ready.”