President Bola Tinubu says the Federal Government decided to remove fuel subsidy and abolish multiple foreign exchange rates to grow the economy for national development.
The president said this while addressing the nation in a broadcast on Sunday on the ongoing nationwide protest.
He said that the Nigerian economy had remained anaemic for decades and taken a dip because of many misalignments that had stunted its growth.
“Just over a year ago, our dear country, Nigeria, reached a point where we couldn’t afford to continue the use of temporary solutions to solve long-term problems for the sake of now and our unborn generations,” he said.
He explained that he took the painful decision to remove fuel subsidies and abolish multiple foreign exchange systems that blocked the greed and the profits that smugglers and rent-seekers made.
Tinubu added that the action also blocked the undue subsidies the country had extended to neighbouring countries to the detriment of its people, rendering the economy prostrate.
“These decisions I made were necessary if we must reverse the decades of economic mismanagement that didn’t serve us well.
“Yes, I agree, the buck stops on my table. But I can assure you that I am focused fully on delivering the governance to the people – good governance for that matter,” the president said
He explained that in the past 14 months, his government had made significant strides in rebuilding the foundation of the economy to carry Nigerians into a future of plenty and abundance.
“On the fiscal side, aggregate government revenues have more than doubled, hitting over N9.1 trillion in the first half of 2024 compared to the first half of 2023.
“This was due to our efforts at blocking leakages, introducing automation, and mobilising funding creatively without additional burden on the people.
“Productivity is gradually increasing in the non-oil sector, reaching new levels and taking advantage of the opportunities in the current economic ambience,” the president stated.
He said that his government had in the last 13 months reduced revenue spent on debt servicing to 68 per cent as against 97 per cent previously.
“We have also cleared legitimate outstanding foreign exchange obligations of about 5 billion dollars without any adverse impact on our programmes.
“This has given us more financial freedom and the 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,” Tinubu said.
The president said that his government had also embarked on major infrastructure projects across the country.
He said the government was working to complete inherited projects critical to the country’s economic prosperity, including roads, bridges, railways, power, and oil and gas developments.
“Notably, the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway projects will open up 16 connecting states, creating thousands of jobs and boosting economic output through trade, tourism and cultural integration.
“Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act.
Vanguard
