President Bola Ahmed Tinubu has again defended his administration's decision to remove fuel subsidy in Nigeria, describing it as a necessary action to prevent the country from going bankrupt and to reset the economy on the path to growth.
At the World Economic Forum's Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, yesterday, Tinubu acknowledged that the removal of fuel subsidy was a difficult decision, but one that was essential for the country's long-term interests.
Detailing the steps taken to set Nigeria's economy on the path of expeditious recovery, the president, in a statement by Presidential spokesman, Ajuri Ngelale, yesterday said he had to take tough but essential decisions like removing fuel subsidy and managing the nation's currency, effectively removing a corruption-laden arbitrage.
"Concerning the question of subsidy removal, there is no doubt that it was going to be difficult, but the hallmark of leadership is making difficult decisions when they need to be made.
"That was necessary for the country. Yes, there have been drawbacks. Yes, there was the expectation that the difficulty would be felt by a greater number of people.
"But, of course, it was the interest of our people that was the primary focus of the government. Along the line, there was an arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country. We shared the pain across the board. We cannot, but include those who are very vulnerable.
"Luckily, we have a very vibrant youth population interested in innovation and highly ready to leverage technology, good education, and who remain committed to growth. We were able to manage that and partition the economic drawback and the fallout of the subsidy removal equally, engendering transparency, accountability, and fiscal discipline for the country."
Speaking on the action to arrest Naira volatility, he said the currency management was necessary, equally, to remove the artificial element of value in the currency. Hence, our local currency finds its level and competes with the rest of the world's currencies as we remove corrupt arbitrage and opaqueness.
"That, we did. At the same time, that is a two-engine problem in a very turbulent situation for the government. But we are able to manage that turbulence because we prepared for this with inclusivity in governance and rapid communication with the public," the President concluded.
The president also said collaboration and inclusiveness are invaluable to achieving global food security, addressing collective challenges, and driving innovation across a chain of interests for a more stable and prosperous world.
President Tinubu said "collaboration and inclusiveness", especially with regard to Africa, are elements to building a future of hope, peace, and progress for all.
He said capital mobilization, which is needed to spur economic growth and associated advancements in Africa, cannot be overlooked any longer.
The president posited that the continent is richly endowed but that the diversity of its resources must reflect in its wherewithal and economic realities.
The president called on global leaders to pay attention to the developments in the Sahel, emphasizing the need for a studied understanding of the vectors of the current situation, while suggesting collaboration in the pursuit of enduring solutions.
"We are encouraging the entire world to pay attention to the Sahel and the other countries around us. As the chairman of ECOWAS Authority of Heads of State and Government, I have wielded the big influence of Nigeria to discourage all unconstitutional change of government.
"Equally, we have eased the sanctions. We need to trade with one another; not fight each other. It is very necessary and compulsory for us to engender growth, stability, and economic prosperity for our people in West Africa.
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"The rest of the world needs to look at the fundamentals of the problem; not just geopolitically, but at the root. Has the world paid attention to the poverty level in the Sahel and the rest of ECOWAS? Have they facilitated the infusion of capital and paid adequate attention to ensuring the exploitation of resources and the creation of opportunities presented by the mineral resources available?"
In her remarks, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva commended President Tinubu for offering insights on how to execute strategic economic reforms.
"President Tinubu has emphasized the right things about what world leaders must consider primarily in the execution of strategic economic reform. He said there is a need to ensure that reforms are accompanied by a human touch. The needs of people must be identified and catered to as governments implement tough but necessary reforms," Georgieva said."
