The Vice President of Nigeria, Kashim Shettima, has said that President Bola Tinubu had to make the difficult decision to remove petrol subsidy because he inherited an economy in poor condition with a debt service-to-revenue ratio of 111.8%.
This is contained in a statement by the Special Adviser to Vice President, Stanley Nkwocha, in Abuja on Thursday.
According to Nkwocha, the vice president said the year before Tinubu’s assumption of office, Nigeria paid N111,800 to debtors for every N100,000 earned as revenue.
He quoted Shettima as saying that it is impossible for the Tinubu’s administration to continue in such trajectory, adding that it will only lead to the “inevitable death” of the economy.
Shettima, who spoke at the 2nd Chronicle Roundtable organized by 21st Century Media Services in Abuja, said that the Buhari’s administration did not make any provisions for fuel subsidy in the 2023 budget.
The Vice President’s claim is similar to data collected by Naijaonpoint Research Team which indicated that the Federal Government’s debt service to revenue ratio reached a concerning 111.8% in 2022, according to the Central Bank of Nigeria.
In addition, Shettima assured Nigerians that the economy will soon recover to take a positive trajectory.
According to Shettima, the president has steered the ship of state through the economic turbulence and storm he met on ground on assumption of office.
President Bola Tinubu removed the subsidy on fuel on May 29, 2023, during his inauguration speech, adding that the fuel subsidy is “gone.”