PARIS OLYMPIC GAMES
President Bola Tinubu has once again justified his administration’s decision to remove the petrol subsidy, which is very key and strategic, to save the nation from bankruptcy.
Speaking as a panelist at the World Economic Forum in Riyadh, Saudi Arabia, on Sunday morning, President Tinubu said the subsidy removal was necessary to orchestrate an economic reset.
“For Nigeria, we are immensely consistent with the belief that economic collaboration and inclusiveness are necessary to engender stability for the rest of the world.
“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy, and to serve as a pathway to growth,” Tinubu said.
He admitted the difficulty associated with his decision to jettison the policy that had allowed Nigerians to purchase petrol at cheaper rates for years.
Tinubu, however, said he was convinced that it was in the best interest of the people.
“It is going to be difficult, but the hallmark of leadership is taking difficult decisions at the time they ought to be taken decisively. Yes, there will be a blowback, and there is expectation that the difficulty in it will be felt by a greater number of the people. But because I believe it is their interest that is the focus of the government, it would be easier to manage the difficulties.
“Along the line, there is a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country. We share the pain across the board, and we cannot help but include those who are vulnerable.
“Luckily, we have a very vibrant youthful population interested in discoveries by themselves, and they are highly ready for technology and good education committed to growth. We are able to manage that and partition the economic drawback and the fallout of subsidy removal.”
Persecondnews recalls that Tinubu announced the removal of subsidies on petrol the day he was inaugurated into office on May 29, 2023.
The action, however, caused the prices of commodities to rise astronomically, increasing hardship in the country, which some of his critics condemned as a policy not well thought out.
Persecondnews also recalls that at the heels of the subsidy removal was the exchange rate unification policy, which the president equally defended during the panel session of the WEF in Riyadh, stating that the management of the nation’s currency by the government was also necessary to allow the Naira to compete favorably with other world currencies.
“The currency management was necessary equally to remove the artificial elements of value in our currency. Let our local currency find its level, compete with the rest of the world’s currencies, and remove arbitrage, corruption, and opaqueness.
“That we did at the same time. That is two engine problems in a very template situation for the government, but we are able to manage that turbulence because we are prepared for inclusivity in governance and rapid communication with the public to really see what is necessary and what you must do,” Tinubu also said.
The World Economic Forum meeting is focused on global collaboration, growth, and energy for development.
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