President Bola Tinubu has insisted that the removal of the fuel subsidy was a necessary and challenging decision to secure Nigeria’s economic future and prevent the country from going bankrupt.
He stated this in Riyadh, Saudi Arabia, where he is participating in the 2024 Special World Economic Forum (WEF) on Global Collaboration, Growth, and Energy for Development.
Tinubu, at the opening of the plenary at the Forum said: “Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, and to reset the economy and the pathway to growth.
“It was going to be difficult but the hallmark of leadership is making difficult decisions. At the time, it ought to be taken decisively. That was necessary for the country.”
Tinubu, who admitted that there have been drawbacks there have been drawbacks, insisted the decision was in the interest of the people and the pain is shared across board.
“Yes, there was the expectation that the difficulty would be felt by a greater number of people. But, of course, I believed it was their interest that was the focus of government. It is easier to manage and explain the difficulties. But along the line, there was a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country.
“We shared the pain across the board. We cannot but include those who are very vulnerable. Luckily, we have a very vibrant youthful population interested in discoveries by themselves and highly ready for the technology, good education and committed to growth.
“We were able to manage that, and partition the economic drawback and the fallout of the subsidy removal equally; engendering transparency, accountability, and physical discipline for the country. And that, to me, is more important to focus on what direction we should go. I will pursue that rigorously.”
Tinubu also emphasised the necessity of the currency management policy saying it was to eliminate the artificial elements of value in Nigeria’s currency.
He highlighted the importance of allowing the local currency to find its level and compete globally, aiming to eradicate arbitrage, corruption, and opaqueness.
“The currency management was necessary equally to remove the artificial element of value in our currency. Hence, our local currency finds its level, competes with the rest of the world’s currencies, and removes arbitrage corruption and opaqueness. That, we did.
“At the same time, that is a two-engine problem in a very turbulent situation for the government. But we are able to manage that turbulence because we prepared for the inclusivity in governance and rapid communication with the public, to see what is necessary and what you must do.”
He described the forum as equally valuable for “us to share experiences and share the hope of the future. What is missing, and I am glad the Kingdom of Saudi Arabia relies on the wind of the words “collaboration” and “inclusiveness.”
“The capital formation that is necessary to drive the economy, like agriculture, food security, innovation, and technological advancement must be an inclusive programme of the entire world. No one should be left behind.
“The fear of lack of capital in Africa stigmatisation. And I am glad the world is recognising the need, that the type of population growth that Africa experienced, the diversity of its resources, must be married with economic opportunity. We must collaborate to do that. And that is what we are doing so far.”
President Tinubu also called on world leaders to pay attention to the Sahel region and the other countries around it.
“We are encouraging the entire world to pay attention to Sahel, and the other countries around us. As the chairman of the ECOWAS, I have wielded the big influence of Nigeria to discourage unconstitutional change of government. That is, stability. Equally, we have eased the sanctions. We need to trade with one another, not fight each other. It is very, very necessary and compulsory for us to engender growth, stability, and economic prosperity for our people.
“The rest of the world needs to look at the fundamentals of the problem; not just ordinary geopolitically but it has to go to the root. Has the world paid attention to the poverty level of Sahel, and the rest of ECOWAS? Have they helped the infusion of capital and paid adequate attention to the exploitation and opportunities availed by the mineral resources available?
“Are we going to play a big brother’s role in a talkshop without necessary action? We just have to be involved in the exploitation, promotion, and prosperity of that region, in order to see peace, stability and economic growth.”
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