Fuel subsidy removal saved Nigeria from bankruptcy, says Tinubu

President Bola Tinubu says the removal of fuel subsidy by his administration saved Nigeria from imminent bankruptcy and has begun to stabilise the economy.

He made the statement on Friday while hosting state governors who visited him in Lagos to celebrate Sallah and mark the third anniversary of his administration.

Tinubu said the policy, though painful, was necessary after years of unsustainable subsidy spending that drained national resources and benefited only a few. He added that the reforms were beginning to restore fiscal discipline and rebuild confidence in the economy.

“It was challenging at the time, but we survived… Instead of bankruptcy, Nigeria has survived. The economy has recovered,” the President said.

He noted that ongoing reforms in agriculture, infrastructure, foreign exchange management, and social investment were already producing positive results. Tinubu also said abandoned infrastructure projects were being revived, while the housing and agriculture sectors were showing renewed growth.

Vice President Kashim Shettima praised the administration’s reforms, particularly the removal of fuel subsidy, describing them as bold decisions needed to fix long-standing structural problems in the economy.

He said the President chose to confront deep-rooted challenges rather than delay difficult decisions, adding that the reforms represent a long-term rebuilding process for the nation.

“What you have done is not simply to administer a government. You have begun the difficult work of re-engineering a nation,” Shettima said, describing the reforms as a “covenant with the future.”