President Bola Ahmed Tinubu has disclosed that Nigeria’s economy was on the verge of collapse when he assumed office in May 2023, citing years of fiscal policy distortions and mismanagement.
“Upon assuming office, our administration inherited a near-collapsed economy caused by decades of fiscal policy distortions and misalignment that had impaired real growth,” Tinubu said in a national broadcast on Wednesday morning to mark Nigeria’s 65th Independence Anniversary.
The President explained that his administration was faced with a critical decision at the time: “As a new administration, we faced a simple choice: continue business as usual and watch our nation drift, or embark on a courageous, fundamental reform path. We chose the path of reform.”
One of his earliest and boldest steps was the removal of the petrol subsidy, which he described as a corrupt system benefiting only a few at the expense of the majority. “In resetting our country for sustainable growth, we ended the corrupt fuel subsidies and multiple foreign exchange rates that created massive incentives for a rentier economy, benefiting only a tiny minority. At the same time, the masses received little or nothing from our Commonwealth,” he said.
The subsidy removal, however, triggered a sharp rise in fuel prices, which in turn led to soaring costs of goods and services, pushing millions of Nigerians into economic hardship. While some experts have criticized the reforms as harsh, Tinubu has consistently defended them as necessary steps for long-term recovery.
Reiterating his stance on Wednesday, the President said, “We chose the path of tomorrow over the comfort of today. Less than three years later, the seeds of those difficult but necessary decisions are bearing fruit.”
