President Bola Tinubu has said the good life Nigerians were living before the removal of fuel subsidy was a fake one and that it was capable of leading the country to a total collapse unless drastic efforts were urgently taken.
TheNewsGuru.com (TNG) reports President Tinubu said this on Saturday during the 34th and 35th combined convocation of the Federal University of Technology, Akure (FUTA), Ondo State.
Tinubu explained that the need to salvage the future, and bring the country back from the brink of collapse necessitated the strategic decisions to remove the fuel subsidy and also unify the exchange rates.
He went further to say the twin policies of fuel subsidy removal and unification of Naira to Dollar exchange rate are already yielding positive outcomes.
“As you are all aware, we took the baton of authority at a time when our economy was nose-diving as a result of heavy debts from fuel and Dollar subsidies. The subsidies were meant to support the poor and make life better for all Nigerians.
“We are all aware of the fact that the poor and average Nigerians were the sufferers of what was supposed to give them succour and improved standard of living.
“Unfortunately, the good life we thought we were living was a fake one that was capable of leading the country to a total collapse unless drastic efforts were urgently taken.
“The need to salvage the future of our children, and bring the country back from the brink of collapse necessitated the strategic decisions to remove the fuel subsidy and also unify the exchange rates,” Tinubu said.
Recall that on his inauguration on May 29, 2023, President Tinubu, who is also the Minister of Petroleum Resources, began his administration by announcing the removal of subsidy on Premium Motor Spirit (PMS), popularly known as petrol. He subsequently went on to unify the Naira to Dollar exchange rate.
The expectation was that the fuel subsidy removal would free up financial resources for other sectors, incentivise domestic refineries for more petroleum products, and reduce dependency on imported fuel and channel funds for the development of critical projects.
However, since assuming office, the prices of goods and services have skyrocketed, with food inflation reaching astronomical heights.
The President, who was represented at the event, by Wahab Egbewole, the Vice-Chancellor of the University of Ilorin (UNILORIN), said: “I am not unaware of the consequences of the tough decisions on our people. I sincerely wish there could be softer options”.
He noted that the country’s macro-economic indicators are improving daily, while the micro-economy, which directly affects citizens, is gradually taking shape.
Tinubu added that Nigeria is transitioning from a consumption-driven economy to one focused on production across all aspects of human endeavours.
“The present challenges call for a high degree of patriotism and I can assure all Nigerians that there is light at the end of the tunnel. After rain comes sunshine. The brighter days are almost here,” President Tinubu said.