In his address to the nation on Sunday, President Bola Tinubu explained his decision to eliminate fuel subsidies and unify foreign exchange rates as necessary measures to foster economic growth and development in Nigeria. The President’s speech comes amidst ongoing nationwide protests against these policies.
According to Tinubu, the removal of fuel subsidies and the implementation of a unified foreign exchange system were vital steps to reverse decades of economic mismanagement that have hindered Nigeria’s progress. These measures are intended to curtail the profits of smugglers and rent-seekers and to ensure that the country’s resources are directed towards serving its citizens.
In the past 13 months, the government has successfully reduced debt servicing costs from 97% to 68%, which has allowed for increased spending on essential social services such as education and healthcare. Additionally, state and local governments have received the highest allocations ever from the Federation Account.
He added, “We have also cleared legitimate outstanding foreign exchange obligations of about five billion dollars without any adverse impact on our programmes.
“This has given us more financial freedom and room to spend more money on you, our citizens, to fund essential social services like education and healthcare.
“It has also led to our state and local governments receiving the highest allocations ever in our country’s history from the Federation Account.”
