President Bola Ahmed Tinubu has defended his administration’s decision to remove the subsidy on Premium Motor Spirit (PMS), stating that the move will “free up resources for critical investments” in the country.
He emphasized that these reforms are part of broader efforts to restore confidence in Nigeria’s economy.
The President made these remarks on Tuesday during the opening of the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference, held in Abuja.
Represented by Vice President Kashim Shettima, President Tinubu described the conference theme, ‘Accelerating Economic Growth and Development: The State of Play and the Way Forward,’ as timely, noting that the country is currently facing several interconnected challenges.
He explained the rationale behind the economic reforms, saying, “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, stabilising the foreign exchange market, and improving fiscal management.”
Addressing the removal of fuel subsidies, the President acknowledged the immediate impact but highlighted the long-term benefits, stating, “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, frequent adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system.”
He also reiterated his administration’s commitment to infrastructure development, emphasizing that collaboration across all sectors, including government, private industry, and civil society, is crucial for sustained economic growth.
“To achieve sustained economic growth, we must intentionally align our policies and actions with the changing global landscape. The government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development,” Tinubu added.
Speaking earlier, the President/Chairman of CIBN, Prof. Pius Deji Olanrewaju, called for an urgent reflection on Nigeria’s economic challenges and the need for innovative solutions.
“We are on a journey to economic growth and prosperity,” he remarked, while also acknowledging the current difficulties. He stressed that the success of monetary policies introduced by the Central Bank of Nigeria depends on “the professionalism and patriotism of operators in the financial services sector.”
In a goodwill message, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, pledged the agency’s commitment to sanitizing the financial system and combating financial crimes.
He urged bankers to prioritize the nation’s interest over profit, stating, “Economic policies will progress where profit is not prioritized by stakeholders but the interest of the nation.”