President Bola Ahmed Tinubu has defended the recent increase in fuel prices, describing it as a necessary step to redirect resources towards infrastructure projects like road construction.
The president made his position clear through Vice President Kashim Shettima, who delivered his message on Tuesday at the 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers in Abuja.
According to a statement from Shettima’s spokesperson, Stanley Nkwocha, Tinubu stressed that key economic reforms, including the removal of the fuel subsidy, are aimed at channeling government funds into essential investments. “Though painful in the short term, removing fuel subsidies is intended to free up budgetary resources for critical investments in infrastructure and social services,” Tinubu said.
He also highlighted that the Central Bank’s frequent adjustments to interest rates, currently at 26.75 percent, are part of efforts to manage inflation and promote a more market-driven exchange rate system. “Frequent adjustments to the monetary policy rate are aimed at curbing inflation and fostering a more market-oriented exchange rate system,” he added.
The president called for cooperation across all sectors—government, private businesses, and civil society—to ensure sustained economic growth. “We must intentionally align our policies and actions with the changing global landscape,” Tinubu urged.
His comments come as Nigerians express frustration over the rising cost of petrol, which has surged to N897 per liter at Nigerian National Petroleum Company Limited stations and as high as N980 at other outlets. This is a sharp increase from previous prices of N617 and N720 per liter, respectively.
The fuel subsidy removal, initiated in June 2023, had previously caused prices to spike from N238 to over N500 per liter.
The rising fuel costs have been a significant factor in the nation’s inflation rate, which reached 33.40 percent in July 2024, up from 24.08 percent during the same period last year.
Despite the challenges, Tinubu reaffirmed the government’s commitment to pursuing reforms that would stabilize the economy, reduce inflation, and support infrastructure development.
