The Presidency has credited President Bola Ahmed Tinubu’s subsidy removal policy with rescuing more than 19 states from the brink of bankruptcy.
This was disclosed by Daniel Bwala, Special Adviser to the President on Policy Communication, during an appearance on TVC’s This Morning Show on Thursday.
Bwala emphasized that the subsidy removal, one of Tinubu’s early economic reforms, has significantly 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 explained.
He further noted that the reforms have created an opportunity for states to refocus on governance and deliver on their promises to the electorate.
“Fuel subsidy is gone,” President Tinubu announced during his inaugural address on May 29, 2023, in Abuja.
This announcement led to a significant increase in the price of PMS, rising from N180 to about N620 per liter, and soaring again a year later to approximately N1,200 at retail filling stations.
Nigeria that works for everybody
Bwala discussed that the effects of Tinubu’s policies are already being felt across the country.
“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 improved financial stability among states has allowed the federal and state governments to address critical issues such as 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,” Bwala added.
FG, States Collaboration
The special adviser appealed to Nigerians to remain patient and supportive of the President’s reform agenda, which aims to transform the country’s economic landscape.
“All of them [the Nigerian people] are patiently following the President as he guides us through this reform process. We are on a journey to a point where Nigeria will work for everyone,” Bwala said.
The subsidy removal policy has drawn both praise and criticism, but its fiscal benefits appear to be undeniable. Analysts have pointed out that freeing up resources previously spent on fuel subsidies has given states the financial breathing room to invest in critical sectors such as education, healthcare, and infrastructure.
Savings from subsidy removal: In November 2024, the presidency claimed that an impressive $7.5 billion is being saved annually from funds previously allocated to fuel subsidy following its removal.
