President Bola Tinubu has stated that the removal of fuel subsidy prevented Nigeria from sliding into bankruptcy, restoring fiscal stability and strengthening economic recovery through ongoing reforms and increased state revenues.
President Bola Ahmed Tinubu on Friday declared that the removal of fuel subsidy by his administration prevented Nigeria from facing imminent bankruptcy and has since laid the foundation for ongoing economic recovery.
He made the statement while hosting state governors who visited him for Sallah celebrations and the third anniversary of his administration.
The delegation included governors from Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun, and Kogi States, alongside deputy governors from Borno and Kano.
Tinubu acknowledged that the subsidy removal was a difficult policy decision, noting that it initially created hardship for citizens but was necessary to stabilise public finances and prevent long-term economic collapse.
He argued that years of subsidy payments had drained national resources and limited investment in critical sectors, stressing that the reform has now freed up fiscal space for development spending.
According to him, Nigeria has since experienced improved economic stability, with signs of growth in agriculture, infrastructure development, and broader macroeconomic indicators.
The President said ongoing reforms across fiscal management, foreign exchange, infrastructure, and agriculture are beginning to restore investor confidence and reposition the economy for sustained growth.
He also praised state governors for supporting the reform process, noting that improved federal allocations have enabled states to clear salary backlogs, reduce debt burdens, and expand development projects.
Vice President Kashim Shettima described the subsidy removal as a courageous decision, stating that it addressed long-standing inefficiencies in the oil sector and marked a turning point in national economic management.
He said the administration chose reform over delay, describing it as a necessary intervention to restructure Nigeria’s economic foundation.
Kwara State Governor, Abdulrahman Abdulrazaq, speaking on behalf of the Nigeria Governors’ Forum, said the policy had significantly improved state finances, allowing subnational governments to meet obligations and invest in infrastructure and social programmes.
He added that many states had reduced reliance on borrowing due to increased revenue inflows following the reforms.
Imo State Governor Hope Uzodinma also commended the President, stating that the reforms had stabilised the economy and improved governance capacity at both federal and state levels.
The meeting concluded with renewed calls for continued cooperation between federal and state governments to sustain economic reforms and deepen development outcomes across the country.
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