By Adedapo Adesanya
President Bola Tinubu has once again said his decision to remove the much-contested subsidy on fuel was aimed at freeing up budgetary resources for critical investments in infrastructure and social services.
The move, according to the President, is part of his administration’s efforts to reform the macroeconomic environment and restore confidence in Nigeria’s economy.
This is despite recent disputes by several bodies, including the World Bank and the International Monetary Fund (IMF) that the subsidy remained, albeit partially.
President Tinubu, represented by the Vice President, Mr Kashim Shettima, at the 17th Annual Chartered Institute of Bankers of Nigeria, Banking and Finance Conference, listed the challenges as high inflation, rising costs of living, unemployment, infrastructure deficits, and effects of global economic shifts, observing that the challenges also present opportunities for growth and development.
“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services,” President Tinubu said.
He added that the government is committed to upgrading Nigeria’s infrastructure to support economic growth, investing in roads, railways, and energy projects through public-private partnerships to reduce transportation costs and improve market access.
He emphasized that the removal of fuel subsidies is part of the administration’s efforts to reform the macroeconomic environment, reduce inflation, stabilize the foreign exchange market, and improve fiscal management.
“We have taken bold steps to reform the macroeconomic environment. Our focus is on restoring confidence in the Nigerian economy through measures aimed at reducing inflation, stabilizing the foreign exchange market, and improving fiscal management,” he said.
The VP emphasized that the government is committed to upgrading Nigeria’s infrastructure to support economic growth.
“We are committed to upgrading Nigeria’s infrastructure to support economic growth. We are investing in roads, railways, and energy projects through public-private partnerships,” Mr Tinubu said, adding that the investments will reduce transportation costs and improve market access.