Tinubu Says Fuel Subsidy Removal Funds Major Projects

President Bola Ahmed Tinubu has said that ending the petrol subsidy has allowed his government to fund important infrastructure projects and pay workers' salaries across Nigeria.

He spoke on Thursday during a visit from the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in Abuja. He thanked the union for supporting his economic reforms.

Mr Tinubu explained that the subsidy system was no longer sustainable. He promised that the government would soon share details on how the money saved from this policy has been used.

“I had a threat of possible strike and I have noticed you may strike all you want but the first subsidy will be gone,” he said. “Today, to the benefit of our great country, I will soon publish the utilisation of what it is.”

He dismissed claims that ending the subsidy has hurt the “common man.” He pointed out that workers at local, state, and federal levels are also ordinary Nigerians benefiting from the government's ability to pay salaries.

“Who are the people receiving the salaries in the local government administration? Are they not common men and women receiving salary regularly at the state level?” he asked. “Are they not common men and women, the ordinary people receiving salary at the federal government regularly?”

Mr Tinubu stated that these economic reforms are part of a bigger plan to change Nigeria's economy. “The economy is not a church play. It’s a system of financial engineering and research,” he said. He also thanked everyone for working with the government.

The president connected these reforms to his government’s ability to fund major road projects. He mentioned the Lagos-Ibadan Expressway, Abuja-Kaduna, Abuja-Sokoto, and Badagry road projects as some of the infrastructure investments his administration is pursuing.

He said these projects aim to boost economic activities and improve the safety of Nigerians. “I’m glad you have seen the effect of being able to find funding for long-term projects,” Mr Tinubu added. “It’s all for the good of us and good of our economy and the safety of our people.”

Mr Tinubu also asked transport operators to make sure that the benefits from the government’s compressed natural gas (CNG) initiative reach commuters. He noted that while CNG has lowered operating costs for some transport operators, this has not yet resulted in lower fares for passengers.

“I will appeal to you, we will do more, we will encourage you, but ask your drivers to let it trickle down to the commuters too,” he said. “Whatever benefit that is coming from CNG is going to the pocket of truck owners. It’s not spreading as fast as I would like it, but it should spread.”

The president assured Nigerians that the country’s refineries would start working again. But he warned that just seeing flames and smoke at a refinery does not mean it is profitable.

“The refineries that you mentioned is going to come back to work,” he said. “Ordinary flame and the smoke of refinery doesn’t mean that it’s working until it’s profitable and yield the value for which it is built.”

Mr Tinubu mentioned that his government has taken on both the good and the bad from past administrations. He said it is his job to fix Nigeria’s economic issues. “I’m not a man who go looking back on everything because I’ve accepted the asset and liability of my predecessor,” he said.

“No matter what has happened in the years past, it’s my responsibility now as the president to fix it, make it work for the largest common value of our population.” He asked Nigerians to be patient with the government's economic reforms. He described democracy as a process that takes time and endurance.

He recognized the challenges of running a democratic government but expressed hope that the reforms would lead to better economic conditions. “Democracy is about celebration of freedom and opportunity that must be cherished by all of us,” he said.

“It’s not easy to manage a democratic regime full of twists and turns, hills and valleys and all of that, but it’s true perseverance, endurance and good determination that we can bring about a relief of a newborn baby in a pregnancy.”

He added, “You see the joy of life it is. Motherhood is painful but the joy is everlasting and I promise you, you will enjoy better Nigeria.