The Presidency has attributed the success of President Bola Ahmed Tinubu’s subsidy removal policy to rescuing over 19 states from the verge of bankruptcy.
The policy, part of wider economic reforms, has helped channel funds previously spent on fuel subsidies toward stabilizing state finances and fostering long-term economic growth.
The Special Adviser to the President on Policy Communication, Daniel Bwala, during an appearance on TVC’s This Morning Show on Thursday.
Bwala stated that the subsidy removal, a major early economic reform by President Tinubu, has substantially increased government revenue and stabilized the finances of many states.
“Before President Bola Tinubu took office, it was reported that over 19 states of the Federation were bankrupt, insolvent, and unable to pay salaries. The president’s policy of subsidy removal has generated increased revenue. Today, states are no longer discussing insolvency or bankruptcy,” Bwala expounded.
He further pointed out that the reforms have provided states with an opportunity to refocus on governance and fulfill their commitments to the electorate.
President Tinudu during his inaugural speech on May 29, 2023, in Abuja, announced the removal of fuel subsidy.
This triggered a sharp rise in the price of PMS, which surged from N180 to about N620 per liter, and, a year later, skyrocketed to around N1,200 at retail filling stations.
Bwala discussed how the impact of Tinubu’s policies is already being felt nationwide.
“The Nigerian people can see the visible, touchable, and feelable effects of these policies. These reforms are designed to create a Nigeria that works for everybody, not just a select few,” he stated.
According to Bwala, the enhanced financial stability of states has enabled both federal and state governments to focus on addressing key issues like poverty alleviation and agricultural development.
“We are asking the states to do us a favour and deliver on the promises they made by ensuring economic equality and ramping up agriculture to boost food security,” he added.
