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Tuesday, August 1, 2023

Subsidy: Nigerians should look beyond temporary pain; we’ve saved over a trillion, says Tinubu

In a nationwide broadcast on Monday, Mr Tinubu said money saved from subsidy removal will be used for the benefit of citizens.

• July 31, 2023
President Bola Ahmed Tinubu
President Bola Ahmed Tinubu [Photo: officialABAT]

President Bola Tinubu has urged Nigerians to look beyond temporary pain, adding that his government has saved over a trillion naira as a result of fuel subsidy removal in just over two months.

“Fellow Nigerians, this period may be hard on us and there is no doubt about it that it is tough on us. But I urge you all to look beyond the present temporary pains and aim at the larger picture. All of our good and helpful plans are in the works. More importantly, I know that they will work,” Mr Tinubu said.

In a nationwide broadcast on Monday, Mr Tinubu said money saved from subsidy removal will be used for the benefit of citizens.

“In a little over two months, we have saved over a trillion naira that would have been squandered on the unproductive fuel subsidy, which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families,” he said.

Mr Tinubu in his inaugural speech on May 29, said, “subsidy is gone,” triggering pump price from N145 to N545, which later hit N617.

In a bid to cushion the ripple effect of increased pump price, Mr Tinubu announced a $10 for 12 million households. The government has, however, reversed the idea.


Though Mr Tinubu-led administration is projected to save at least N13 trillion from subsidy reform in three years, the World Bank said: “compensating transfers will be essential to help shield the most vulnerable Nigerian households from the initial price impacts of the subsidy reform.”


“Without compensation, many households could be pushed into poverty by higher petrol prices and have to resort to coping mechanisms with long-term adverse consequences,” World Bank added.

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