President Bola Tinubu’s administration inherited a Nigerian economy teetering on the brink of collapse, necessitating swift and decisive action. The most significant of these actions was the removal of the fuel subsidy, a policy that had for decades placed an unsustainable burden on the nation’s finances. President Tinubu argued that this subsidy, while seemingly beneficial to citizens, was in reality a drain on resources that could have been invested in critical areas like education, infrastructure, and healthcare. He described the situation as spending the money of future generations, effectively mortgaging the country’s future for short-term gains. The subsidy, he further explained, was not only financially debilitating but also fueled regional smuggling, with Nigeria effectively subsidizing fuel consumption in neighboring countries. This unsustainable practice, according to the President, had to be stopped to secure the economic well-being of future generations.
The removal of the fuel subsidy was a bold and politically risky move, as it led to immediate increases in fuel prices and a subsequent rise in the cost of living. However, President Tinubu argued that this short-term pain was necessary to avert a long-term economic catastrophe. He maintained that had the subsidy remained in place, Nigeria would have faced imminent bankruptcy, unable to meet its financial obligations and provide essential services to its citizens. The President likened the situation to a ticking time bomb, which his administration had to defuse before it detonated, causing irreparable damage to the nation’s economy. This sense of urgency underpinned the decision to remove the subsidy, despite the potential for public backlash.
The President’s decision was met with mixed reactions, with some praising his courage and foresight, while others criticized the move for its immediate impact on the cost of living. However, President Tinubu maintained that the long-term benefits of the subsidy removal would far outweigh the initial hardships. He pointed to the stabilization of the exchange rate and a decrease in food prices, particularly during Ramadan, as early signs of the positive impact of the reforms. These early successes, he argued, demonstrated the soundness of his economic policies and provided a glimpse of the brighter future that awaited Nigeria.
Beyond the removal of the fuel subsidy, President Tinubu’s administration also implemented other crucial economic reforms aimed at stabilizing the economy and laying the foundation for sustainable growth. He highlighted the importance of democracy as the best path towards achieving economic, social, and political development, emphasizing the role of democratic principles in ensuring accountability and good governance. He drew parallels between his time in the Third Republic and his current position, suggesting that the democratic ideals he championed then had ultimately paved the way for his presidency. This commitment to democratic principles, he asserted, would guide his administration’s policies and actions.
The President’s engagement with a delegation of former National Assembly colleagues from the aborted Third Republic underscored his commitment to inclusive governance and seeking counsel from experienced leaders. The delegation, led by Senator Emmanuel Nwaka, expressed their support for several of the administration’s initiatives, particularly the Nigerian Education Loan Fund and the Nigerian Consumer Credit Corporation (CREDICORP). They praised these programs as impactful interventions that would alleviate the financial burden on students and provide access to credit for young Nigerians seeking to acquire assets like cars and houses. Senator Nwaka emphasized the importance of supporting students, recognizing them as the largest demographic in the country and crucial to the nation’s future. He also lauded CREDICORP as a tool for fighting corruption by providing legitimate avenues for young people to access credit, reducing the temptation to engage in corrupt practices.
In summary, President Tinubu’s administration inherited a deeply troubled economy burdened by the unsustainable fuel subsidy. His decision to remove the subsidy, though controversial, was presented as a necessary step to avert national bankruptcy and secure the future of Nigeria. The President pointed to early positive indicators like exchange rate stabilization and decreasing food prices as evidence of the effectiveness of his economic reforms. He emphasized his commitment to democratic principles and highlighted key programs like the Nigerian Education Loan Fund and CREDICORP as crucial interventions designed to empower Nigerian citizens and drive economic growth. The reception of the delegation of former colleagues, and their positive assessment of the new initiatives, reinforced the message of a government committed to inclusive governance and long-term economic prosperity for all Nigerians.
