President Bola Tinubu has stated that the removal of the fuel subsidy at the start of his administration saved Nigeria from imminent bankruptcy, adding that ongoing reforms are now yielding visible economic benefits. Speaking on Friday, May 29, while hosting state governors at his Ikoyi residence in Lagos for Sallah celebrations and the third anniversary of his tenure, Tinubu emphasized that the decision, though difficult, was essential.
"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.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, detailed the remarks in a statement titled, 'Fuel Subsidy Removal Saved Nigeria From Bankruptcy, Says President Tinubu.' Governors from Lagos, Ogun, Enugu, Delta, Edo, Ondo, Ekiti, Niger, Sokoto, Kebbi, Jigawa, Nasarawa, Taraba, Adamawa, Benue, and Kogi attended, along with deputy governors from Borno and Kano.
Tinubu argued that the subsidy regime had long drained national resources while benefiting only a small segment of the population. He said reforms across infrastructure, agriculture, social investment, foreign exchange management, and fiscal policy were restoring investor confidence.
"I'm glad governors are no longer borrowing from the federal government and asking for interventions and not knowing how to survive, how to pay salaries, no more. You kept the spirit, you kept the hope. You persuaded our people to be patient and endure these three years of painful reform, during which we put the economy on a reset. Today, the benefits are showing. The economy has recovered. Macroeconomic indices are doing very well. Construction is ongoing on roads and infrastructure; the ones abandoned have been rehabilitated.
"The housing industry is coming on very well. Agriculture will prosper again. We will achieve food sovereignty if we utilise the land that is in your possession and in your various states effectively," he said.
Tinubu also referenced the Sokoto-Badagry highway corridor, highlighting its agricultural and energy potential. "Today, I was watching some clips of the Sokoto-Badagry axis. Imagine how many dams on that corridor for irrigation, for farmland, for electricity. Many of you have survived and promoted the perseverance of many of our people, asking them to trust this government, and you have built that trust around one person: my leadership. I thank you very much."
Vice President Kashim Shettima described the reforms as historic, saying they reflected decisive leadership. "Your Excellency, Mr President, this is the essence of your leadership. You did not come to power in the season of ease. You came at a time when the house required more than a painter.
"It required a builder with the courage to examine the foundation you inherited. In that defining hour, you chose not to postpone the surgery. You chose not to massage the wound. You chose to confront the contradictions that have held this country hostage for 50 years. That is the miracle of your courage."
"What you have done is not simply to administer a government. You have begun the difficult work of re-engineering a nation. You have reminded us that reform is not a banquet; it is a battlefield. It is not a picnic for the chicken-hearted. It is a covenant with the future," he added.
Kwara State Governor and Nigeria Governors' Forum chairman AbdulRahman AbdulRazaq said the reforms had significantly improved states' finances. He stated that states were now less reliant on borrowing and better able to meet obligations. "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. Many states were subject to issuing bonds and borrowing money. Today, states are not going to borrow money; they're not going to issue bonds. In fact, we're reducing our debt," he said.
Imo State Governor Hope Uzodinma said governors had assessed Tinubu's performance and given him full approval. "We are the frontline beneficiaries of the innovative approach you brought to bear in governance.
"We came to join you in thanking Almighty God who made this thing possible. You have virtually recovered Nigeria from the brink of collapse to a state of stability and survival. We have assessed your performance, Mr President, and I'm happy to announce that we have scored it 100 per cent," he said.
Lagos State Governor Babajide Sanwo-Olu also attended the meeting.
