Tinubu Explains Removal of Fuel Subsidy and Elimination of Multiple Forex Systems

President Bola Tinubu stated that he decided to remove the fuel subsidy and eliminate multiple foreign exchange rates to stimulate economic growth and promote national development.

During a national broadcast on Sunday, addressing the ongoing nationwide protest, Tinubu explained that the removal of the fuel subsidy and the elimination of multiple foreign exchange systems were necessary to curb the greed and profits of smugglers and rent-seekers. He added that these measures also halted the undue subsidies extended to neighboring countries, which had been detrimental to Nigeria’s economy.

The President noted that the Nigerian economy had struggled for decades due to various misalignments that stunted its growth. He said, “Just over a year ago, our dear country, Nigeria, reached a point where we couldn’t afford to continue using temporary solutions to solve long-term problems for the sake of now and our unborn generations.”

Tinubu emphasized that these difficult decisions were essential to reversing years of economic mismanagement. He acknowledged responsibility for these actions, stating, “Yes, I agree, the buck stops with me. But I can assure you that I am fully focused on delivering good governance to the people.”

He also highlighted that his administration had, over the past 13 months, reduced the percentage of revenue spent on debt servicing from 97% to 68%. Furthermore, the government had cleared legitimate outstanding foreign exchange obligations of about five billion dollars without negatively impacting its programs. This, Tinubu said, has provided more financial freedom to invest in essential social services like education and healthcare and has resulted in the highest allocations ever received by state and local governments from the Federation Account.