Subsidy removal necessary for Nigeria not to go bankrupt, says Tinubu

President Bola Tinubu has again defended his administration’s decision to remove petrol subsidy.

Tinubu spoke in Riyadh, Saudi Arabia, on Sunday as one of the panelists at the ongoing World Economic Forum (WEF).

The WEF meeting focuses on Global Collaboration, Growth and Energy for Development.

The President said the subsidy was removed to reset Nigeria’s economy and prevent the nation from going bankrupt.

Tinubu had announced the removal of the subsidy on May 29, 2023.

The development immediately led to a spike in the price of the product and stoked inflation across the board.

Speaking on Sunday, President Tinubu said: “For Nigeria, we are immensely consistent with the belief that economic collaboration and inclusiveness is necessary to engender stability in the rest of the world.

“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth.

“It is going to be difficult, but the hallmark of leadership is taking difficult decisions at the time it ought to be taken decisively. That was necessary for the country.

“Yes, there will be blowback, there is expectation that the difficulty in it will be felt by a greater number of the people, but once I believe it is their interest that is the focus of the government, it is easier to manage and explain the difficulties.

“Along the line, there is a parallel arrangement to really cushion the effect of the subsidy removal on the vulnerable population of the country. We share the pain across the board, we cannot but include those who are vulnerable.

“Luckily, we have a very vibrant youthful population interested in discoveries by themselves and they are highly ready for technology, good education committed to growth. We are able to manage that and partition the economic drawback and the fallout of subsidy removal.”