Fuel Subsidy Removal Saved Nigeria From Bankruptcy, Tinubu Tells Governors at Third Anniversary Celebration

President Bola Ahmed Tinubu has defended his administration’s decision to remove fuel subsidy, saying the policy saved Nigeria from imminent bankruptcy and laid the foundation for the country’s economic recovery.

The President made the remarks on Friday while hosting state governors who visited him to celebrate Eid-el-Kabir and the third anniversary of his administration.

Among those present were the governors of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun and Kogi states, as well as the deputy governors of Borno and Kano states.

Tinubu acknowledged that the subsidy removal was a difficult and painful decision for many Nigerians but insisted it was necessary to prevent fiscal collapse and restore economic stability.

According to him, Nigeria had spent vast resources on a subsidy regime that benefited only a few individuals while depriving critical sectors of much-needed investments.

“It was challenging at the time, but we survived. We faced litigation and accusations. We survived them. Instead of bankruptcy, Nigeria has survived. The economy has recovered. It is growing. Agriculture is booming,” the President said.

He noted that major reforms in infrastructure, agriculture, social investment programmes, foreign exchange management and fiscal discipline were beginning to yield results, restoring investor confidence and improving the nation’s economic outlook.

Tinubu also praised governors for supporting the reforms and encouraging citizens to remain patient throughout what he described as three years of painful but necessary economic restructuring.

“I’m glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive or pay salaries. Today, the benefits are showing,” he said.

The President expressed optimism that ongoing investments in road infrastructure, housing and agriculture would further strengthen the economy and help Nigeria achieve food sovereignty through effective utilisation of available land across the states.

He assured Nigerians that his administration would continue implementing policies aimed at reducing hardship, creating jobs, improving food security and promoting inclusive economic growth.

Vice President Kashim Shettima commended Tinubu for what he described as his courage and determination in confronting long-standing distortions in the oil sector through subsidy removal.

According to Shettima, the President chose to address structural challenges rather than postpone difficult decisions, describing the reforms as a bold effort to re-engineer the nation’s future.

Speaking on behalf of the Nigeria Governors’ Forum, Kwara State Governor AbdulRahman AbdulRazaq said the fuel subsidy removal and accompanying fiscal reforms had significantly improved the financial capacity of state governments.

He noted that increased revenues enabled many states to clear outstanding salaries and pensions, reduce debt burdens and execute critical infrastructure and social development projects.

“I think the nation was shocked by the audacity of Mr President to implement that serious policy, but today, it has benefited immensely from that policy,” AbdulRazaq said.

The governor added that many states were now reducing their debt profiles rather than relying on bonds and loans to finance their operations.

Also speaking, Chairman of the Progressive Governors Forum and Imo State Governor Hope Uzodinma credited Tinubu’s reforms with stabilising the nation’s economy and steering it away from collapse.

Uzodinma said governors had assessed the President’s performance positively and expressed appreciation for his leadership and interventions in support of subnational governments.

Earlier, Lagos State Governor Babajide Sanwo-Olu welcomed his colleagues to Lagos for the Sallah celebration and thanked them for their continued support for the President, urging them to sustain the momentum behind the administration’s reform agenda.