Tinubu: No regrets over subsidy removal, forex unification

PRESIDENT Bola Ahmed Tinubu has reaffirmed his administration’s controversial economic reforms, insisting that he has no regrets over the removal of fuel subsidy and the unification of the foreign exchange (FX) market despite the economic hardship faced by many Nigerians.

Speaking on Friday in Kigali during the just-concluded Africa CEO Forum, Tinubu said the decisions were necessary to stabilise the economy, curb leakages and restore fiscal discipline.

According to the president, transformative leadership requires taking difficult decisions at the appropriate time, even when they are unpopular.

“It is a fake life to think you can, in a global economy, continue the subsidy that is wasteful. It encourages falsification of documents and smuggling, and that became a major challenge for the country,” he said.

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Tinubu argued that the end of the subsidy regime has significantly improved allocations to states from the federation account, noting that many states previously struggled to meet basic obligations such as salary payments.

He said before the reforms, a majority of states were unable to pay workers regularly despite Nigeria’s oil revenues, stressing that the old system was unsustainable.

The president compared the economic pains resulting from the reforms to childbirth, describing the process as painful but necessary for long-term benefits.

While defending the administration’s tax reforms, Tinubu maintained that national development cannot be achieved without citizens fulfilling tax obligations.

“Nobody likes paying taxes, whether rich or poor, but people still expect good roads, hospitals and social services. The question is always how to fund them,” he said.

He also dismissed claims by opposition figures that the economy was deteriorating, insisting that recent indicators point to improving stability.

According to him, the naira has become more stable and predictable, allowing businesses and government planners to make more realistic financial projections.

Tinubu acknowledged that the reforms have worsened living conditions for many Nigerians in the short term, but said the government has introduced intervention programmes to cushion the impact.

He cited student support schemes and cash transfers for poor and vulnerable households as part of measures designed to ease economic pressure on citizens.

The president further pledged continued support for local investors, using the Dangote Refinery as an example of indigenous industrial projects deserving government backing.

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He said the approval granted for crude oil sales in naira to the refinery was intended to reduce operational bottlenecks and ease pressure on FX demand.

According to Tinubu, allowing crude transactions in naira eliminates some of the bureaucratic and FX challenges associated with letters of credit and dollar-denominated purchases.