Fuel subsidy, multiple FX rates choked Nigeria’s future – Tinubu

In a statement marking his administration’s second year in office, Tinubu said that upon taking office on May 29, 2023, it became clear that decades-long fuel subsidies and a fragmented forex system were draining national resources and threatening Nigeria’s long-term viability.

“The situation I inherited demanded urgent and decisive action,” the president said. “To steer the country away from economic collapse, I introduced two key reforms: eliminating fuel subsidies and unifying the foreign exchange rates.”

He added that the previous policies had become unsustainable and corrupt, acting as a “chokehold” on the country’s development.

Following the subsidy removal, fuel prices surged from ₦200 to about ₦1,000 per litre, while the naira weakened significantly—from roughly ₦800 to about ₦1,600 against the US dollar. Economists have linked rising inflation and cost of living directly to these moves.

Nevertheless, Tinubu emphasized that the reforms were essential to rebuild Nigeria’s economy and strengthen its social systems.

“We have laid the groundwork for a more resilient future by rolling out a new national fiscal policy,” he explained. “This framework promotes fair taxation, prudent borrowing, and disciplined public spending. Our aim is to ease the cost of living, foster equity, and create an investment-friendly environment.”

The president expressed gratitude to Nigerians for their support and trust over the past two years, reaffirming his commitment to addressing the country’s socio-economic challenges.

“We are at the halfway point in this mandate that began 24 months ago,” he noted. “This day offers us the opportunity to reflect on our progress and reaffirm our commitment to building a prosperous, united, and secure Nigeria.”

Tinubu pledged to continue tackling economic instability, enhancing national security, fighting corruption, reforming governance, and reducing poverty.