President Bola Tinubu has said that the removal of petrol subsidy in May 2023 was designed to free up resources for investment in critical infrastructure.
The President spoke on Tuesday when he declared open the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference held in Abuja.
“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services, frequent adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system,” he said.
Tinubu, who was represented at the event by his deputy, Vice President Kashim Shettima, described this year’s theme for the CIBN Conference, ‘Accelerating Economic Growth and Development: The State of Play and the Way Forward,’ as both timely and imperative.
Listing the challenges to include high inflation, rising costs of living, unemployment, infrastructure deficits and effects of global economic shifts, the President observed however that the challenges also present opportunities for growth and development.
“This theme will enable us to evaluate where we stand as a nation, understand the root causes of our economic challenges, and explore actionable strategies to accelerate growth and development sustainably and inclusively,” he noted, according to a statement by presidential spokesman Stanley Nkwocha.
“We have taken bold steps to reform the macroeconomic environment. Our focus is on restoring confidence in the Nigerian economy through measures aimed at reducing inflation, stabilising the foreign exchange market, and improving fiscal management.”
The President also noted that his administration is committed to strengthening infrastructure development in the ongoing bid to grow Nigeria’s economy.
“We are committed to upgrading Nigeria’s infrastructure to support economic growth. We are investing in roads, railways, and energy projects through public-private partnerships to reduce transportation costs and improve market access,” he said.
Tinubu, ex-Lagos governor, removed petrol subsidy on May 29, 2023, when he assumed office as Nigeria’s president. The pump price of the premium commodity jumped from around N200/litre to over N1,000/litre.
The singular decision of the President has been criticised by many Nigerians including labour unions as over 200 million residents of the country battle unprecedented high cost of living and inflation.