President Bola Ahmed Tinubu says the removal of fuel subsidy by his administration has prevented Nigeria from imminent bankruptcy and laid the foundation for economic recovery.
He made the remark while hosting state governors at the Presidential Villa in Abuja for Sallah homage and activities marking his third year in office.
The President said the decades-long subsidy regime had drained national resources and benefited only a few, while denying critical sectors such as education, healthcare, agriculture and infrastructure the funding they required.
Tinubu acknowledged that the decision was painful for Nigerians but insisted it was necessary to avoid fiscal collapse and restore long-term economic stability.
He noted that despite initial difficulties and public criticism, the economy is now showing signs of recovery, with improvements in agriculture, infrastructure development and investor confidence.
According to him, ongoing reforms in foreign exchange management, fiscal discipline, social investment programmes and food production are gradually stabilising key economic indicators.
The President also praised state governors for their cooperation, saying improved federal–state collaboration has strengthened governance and development efforts across the country.
He added that increased revenue allocations to states have enabled them to clear salary arrears, pay pensions and embark on key infrastructure projects.
Vice President Kashim Shettima, in his remarks, commended the President’s leadership style, describing the subsidy removal as a courageous step that addressed long-standing inefficiencies in the oil sector.
Speaking on behalf of the Governors’ Forum, Kwara State Governor AbdulRahman AbdulRazaq also backed the reforms, saying they had improved states’ financial capacity and boosted development initiatives at the sub-national level.
The governors reaffirmed their support for the administration’s economic policies, while urging continued efforts to ease the burden on citizens as reforms take full effect.
