President Bola Ahmed Tinubu has defended the removal of fuel subsidy and the unification of Nigeria’s foreign exchange market, saying the policies were necessary to prevent a looming fiscal collapse and deeper economic instability.
Speaking during his third anniversary nationwide address, the President said Nigeria was spending as much as ₦18.4 billion daily on petrol subsidies, amounting to over ₦4 trillion in 2022 alone.
He also disclosed that the existence of multiple foreign exchange windows created opportunities for arbitrage and speculative trading, which he said drained more than ₦8 trillion from the economy within three years through rent-seeking activities.
According to Tinubu, the economic situation required urgent and decisive reforms to stabilise public finances and prevent a broader national crisis.
“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis,” he said.
The President acknowledged that the reforms have triggered inflationary pressures and increased the cost of living for Nigerians, but maintained that they were essential to restoring macroeconomic stability.
He added that the policy direction has improved government revenues and strengthened confidence in the economy, despite short-term economic hardship.
Tinubu said the decision to prioritise long-term national stability over immediate political convenience was necessary to secure Nigeria’s economic future.
