Nigeria is one of Africa's biggest exporters of crude oil, but its fuel refineries remain underdeveloped
IBTimes NG

President Bola Tinubu has defended the removal of the fuel subsidy, calling it an essential move for Nigeria's financial stability.

Speaking with journalists on Monday in Lagos, Tinubu explained that the subsidy system was unsustainable and harmful to the country's long-term economic well-being.

"We were spending our future. We were spending our generations' fortunes; we were not investing. We were just deceiving ourselves. That reform is necessary. I could see the smugglers fighting back; that didn't affect me. It affects smuggling," he said, Punch reported.

"Why should you have expenditures that you don't have revenue for? I don't want to question people who have acquired limousine kind of vehicles on the road. We should teach management in all our programs. We have to manage our resources within our means," he added.

Tinubu said that giving out fuel to neighboring countries was unsustainable and defended the fuel subsidy removal. He expressed no regrets about the decision, emphasizing that it was necessary to avoid depleting future generations' investments.

The president rejected the idea of a phased removal, stating that it wouldn't change the need to pay bills and that the government must adjust its spending. He warned that failing to act would lead to financial disaster for the country and future generations.

He also said he wasn't planning to reduce his cabinet, as all his appointees were contributing value. Tinubu explained that Nigeria, being a large country, needed many hands, and his appointees had specific roles.

Tinubu also emphasized that the focus should be on efficiency and effectiveness.

Regarding the 2025 budget, he outlined plans to reduce inflation from 34% to 15% by increasing local production and cutting imports.

Tinubu said that by supporting farmers with funding, security, and low interest rates, Nigeria could boost food production. He also highlighted the importance of manufacturing local medicines and creating incentives for growth. Furthermore, he called for reducing the cost of governance.

In October, the Nigeria Labor Congress called out the International Monetary Fund (IMF) for denying responsibility for the Nigerian government's recent removal of the petrol subsidy.

The union called this denial cynical and a clear example of the IMF and World Bank's ongoing practice of imposing harsh economic policies on developing countries.