In a broadcast this evening, President Tinubu apologised for the rising cost of living in the country since he emerged as president on May 29. The president also admitted that the increase was as a result of two economic decisions he made: the removal of the fuel subsidy and the unification of the exchange rates.
While these steps may have some unfavourable short-term implications, the president stressed that the decisions were made with the greatest interests of the country in mind.
“I wish there were other ways,” he said in his address, “but there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love.”
According to the president, the fuel subsidy costs the country trillions of Naira each year, and the money saved will now be deployed to healthcare, schools, housing, and national security.
“For several years, I have consistently maintained the position that the fuel subsidy had to go.”
He went on to add that the subsidy plan started out as beneficial but has swiftly turned into a scheme to enrich a few individuals.
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“The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign,” said the president in his address.
President Tinubu noted that the previous administration of Muhammadu Buhari recognised the risk of ongoing subsidy funding and wisely decided not to budget for it in the second half of 2023.
In addition, he stated that the multiple exchange rate had also become a means of diverting funds that could have been utilised to create jobs, and establish industries, and enterprises for millions of people. As a result, the scheme has to go, said the president.
“I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight.”
The president explained that by unifying the exchange rates, the country could now address head-on the threat of illicit and mass accumulation of money.
“This fight is to define the fate and future of our nation. Much is in the balance,” President Tinubu said.
