Subsidy removal saved Nigeria from bankruptcy, Tinubu insists

President Bola Tinubu declared on Friday that the removal of the fuel subsidy at the outset of his presidency averted imminent bankruptcy for Nigeria and that the subsequent reforms are now showing tangible benefits for states and citizens. Speaking at his Lagos residence while receiving state governors for Sallah celebrations and his administration's third anniversary, Tinubu acknowledged the difficulties but asserted Nigeria's survival and economic recovery.

"It was challenging at the time, but we survived. We faced litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming," the President stated. He argued that the subsidy regime had long drained resources, benefiting a select few while starving critical sectors of investment.

Tinubu highlighted ongoing reforms in infrastructure, agriculture, social investment, foreign exchange, and fiscal discipline, which he believes are restoring investor confidence and improving economic prospects. He specifically thanked the state governors for their crucial role in managing public expectations through the most turbulent phase of these reforms.

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It was challenging at the time, but we survived. We faced litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming.

"I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries, no more. You kept the spirit, you kept the hope. You persuaded our people to be patient and endure these three years of painful reform, during which we put the economy on a reset. Today, the benefits are showing," he told the governors.

The President further elaborated on the economic recovery, noting positive macroeconomic indices and ongoing infrastructure projects. He expressed confidence in the potential of agriculture and cited the Sokoto-Badagry highway corridor as an example of potential for irrigation and development. Vice President Kashim Shettima reportedly described Tinubu’s economic decisions as acts of historic courage.

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I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries, no more. You kept the spirit, you kept the hope. You persuaded our people to be patient and endure these three years of painful reform, during which we put the economy on a reset. Today, the benefits are showing.