President Bola Tinubu has defended his decision to end fuel subsidy, describing it as a necessary step to rescue the economy and redirect Nigeria’s wealth to benefit ordinary citizens.

In his Independence Day broadcast, Tinubu recalled inheriting a “near-collapsed economy” and said tough choices had to be made.

“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. We chose the path of tomorrow over the comfort of today,” he said.

Tinubu explained that subsidy payments and multiple exchange rates created a system where a tiny minority reaped all the benefits while the masses got nothing.

“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 President stressed that money saved from subsidy removal is being channeled into education, healthcare, security, agriculture, and infrastructure.

“Following the removal of the corrupt petroleum subsidy, we have freed up trillions of Naira for targeted investment in the real economy and social programmes for the most vulnerable, as well as all tiers of government,” he said.

Tinubu acknowledged the reforms had come with hardship but assured citizens that the sacrifice was already paying off.

“I have always candidly acknowledged that these reforms have come with some temporary pains. However, the alternative of allowing our country to descend into economic chaos or bankruptcy was not an option. Our macro-economic progress has proven that our sacrifices have not been in vain. Together, we are laying a new foundation cast in concrete, not on quicksand,” he said.

Tinubu announced the end of fuel subsidy on May 29, 2023, during his inauguration as Nigeria’s 16th President, triggering fuel scarcity and sharp increases in pump prices.