Nigeria President Asiwaju Bola Ahmed Tinubu, has explained why fuel subsidy’s removal is sacrosanct.
He stated this during his inaugural speech, saying that there was no more provision in the budget for fuel subsidy, and as such, fuel subsidy has been removed.
He said money previously meant for fuel subsidy will now be used to better the Nigerian economy.
“We shall instead re-channel whatever comes forth to fund better investment and public infrastructure, education, healthcare and jobs that will materially improve life for our people.”
In Tinubu’s speech, while he spoke on his plans for Nigeria during his term as president, he said, “On fuel subsidy, unfortunately, the budget that I have glimpsed before I assumed office and what I’ve heard is that no provision is there for fuel subsidy.
“So, fuel subsidy is gone. Subsidy can no longer justify the ever-increasing cost in the wake of drying resources. We shall instead re-channel whatever comes forth to fund better investment and public infrastructure, education, healthcare and jobs that will materially improve life for our people.”
Speaking on monetary policy, Tinubu said that “thorough house cleaning” is necessary.
“The Central Bank must work towards a unified exchange rate. direct the funds from arbitrage to meaningful investment and the plants and equipment, and jobs that will power the real economy,” he said.
He also noted that the interest rate needs to come down, saying, “We have to work on all of those.”
During his campaign for the Presidency, Tinubu promised that once elected, he will remove fuel subsidy, which he delivered on, as he has announced the removal of subsidy on his first day in office.