President Bola Ahmed Tinubu has assured Nigerians that the money saved from removing fuel subsidy is not being wasted.
According to him, it is being channelled into crucial infrastructure, social protection programmes, and economic reforms aimed at restoring public confidence and building a more inclusive nation.
Speaking through the Minister of State for Finance, Dr Doris Uzoka-Anite, at a national conference on public accounts and fiscal governance held in Abuja on Monday, Tinubu explained why the fuel subsidy had to go.
“In 2022 alone, Nigeria spent over ₦4 trillion on fuel subsidies, more than we allocated to capital expenditure,” the President said. “This was not only physically unsustainable but also unjust. A subsidy that disproportionately benefited the affluent, encouraged smuggling, and bred inefficiency was neither equitable nor strategic.”
He admitted that the decision to end the subsidy was tough and painful, but necessary. The funds, he said, are now being used more responsibly—to improve transport systems, expand safety nets, and build the kind of infrastructure that touches lives across the country.
“Since its removal, we have redirected those funds into targeted interventions… Most importantly, we have strengthened our fiscal buffers, making Nigeria more resilient to external shocks,” he added.
Tinubu also acknowledged that the journey to economic recovery will be long but believes the foundation is being laid.
He spoke of new tax reforms recently signed into law, which aim to widen the tax net, digitise revenue collection, and ease the burden on small businesses.
“These reforms are designed to widen the tax base by integrating the informal sector, simplify compliance… and harmonise multiple taxes to make doing business easier in Nigeria,” he said.
He pointed to agriculture, manufacturing, renewable energy, digital services, and the creative industry as priority sectors now receiving government attention. Institutions like the National Credit Guarantee Company, he said, are being set up to support small businesses and local production.
The President also praised the Central Bank for working in sync with his administration to stabilise the naira and reduce inflation.
He stressed the importance of accountability and digital transparency, citing platforms like the IPPIS, GIFMIS, and the Open Treasury Portal as steps in the right direction.
