Tinubu: Removing Fuel Subsidy and Tax Reforms Are Painful but Essential for the Economy

Promises to do more work in first two years if re‑elected

Deji Elumoye in Abuja

President Bola Tinubu defended the removal of the fuel subsidy and the unification of the foreign exchange market—two measures implemented early in his 2023 administration—during an interview session at Day Two of the Africa CEO Forum in Kigali, Rwanda. He described the reforms as “painful but necessary” for sustaining Nigeria’s economy, comparing the temporary hardship to the experience of childbirth and the eventual benefits it brings to the nation.

“It is difficult, it is painful, but it is just like the human reproduction process. A woman carries a pregnancy, enjoys the pain of labour, and has a very big smile when she sees a live child,” Tinubu said.

The president argued that maintaining the old subsidy regime would have “spent the future of unborn generations.” He added, “It is a fake life to think you can, in a global economy, continue the subsidy that is wasteful. It’s an encouragement to falsification of papers, smuggling, and that is a very critical situation for the country.”

He recalled that before the reforms, many states struggled to meet basic obligations, including salary payments. “Of the 36 states, 27 of them were unable to pay the salaries of the workers. Where is the money? You are oil producing, you are earning, you are given fuel, you have no refinery that is functional. It is not possible to continue that trend,” he said.

Looking ahead to a potential re‑election in 2027, Tinubu said the first two years of a second term would be devoted to “more work.” He emphasized that his administration would continue to pursue difficult but necessary reforms to reset Nigeria’s economy and secure future generations.

“Do more work. More challenges are there. The world won’t wait for anybody. You have to continue to reset and rethink, challenge the intellectual curiosity of you as a government,” the president said when asked what he would focus on if re‑elected. “The philosophy I came with in governance is believing that the hallmark of a transformative leader is the ability to take decisions, do what you’ll do, at the time it has to be done, on behalf of the people.”

He also defended taxation as a tool for development, noting that citizens who demand modern infrastructure and social services must be prepared to contribute through taxes. “Nobody wants to pay taxes ordinarily. Taxation is not friendly to the wealthy, to the middle class, and to the poor. Every human being expects development, but the question they don’t answer is, how do you pay for it? You want a very good highway, but you don’t want it to go through your land. You want a good hospital and don’t want to pay taxes. How do you care for the vulnerable? How do you protect the future of the children?” he asked.

“A citizen that pays taxes is a citizen, whether corporate or individual,” Tinubu added, stressing that tax‑paying is a critical civic responsibility.

He highlighted early gains from the reforms, stating that the economy had become more stable and predictable, which allows businesses and households to plan more effectively. “Today there is a very bright light at the end of the corner; the economy is stable, the Naira is stable, predictable, planners can do a reasonable budget, they can plan their lives well.”

The president also announced that the government is implementing direct cash transfers to poor households and supporting education through grants and allowances for indigent students. “For those students ordinarily who would stay out of school because their parents cannot afford school fees, they are now in school. I’m even giving them allowances and upkeeps for their school.”

Regarding industrial policy, Tinubu said the focus is not on protectionism but on supporting businesses capable of creating jobs and stimulating domestic production, citing the Dangote Refinery and BUA Group as examples of local enterprises deserving government backing. He explained that the administration approved the sale of crude oil to the refinery in Naira to ease operational difficulties and reduce pressure on foreign exchange. “You don’t have to go through letter of credit and bureaucracy and make foreign exchange difficult for him. Give it to him in Naira,” he said.

He defended the ongoing Lagos‑Calabar Coastal Highway project as part of a broader national integration and economic inclusion agenda. The road would connect Nigeria’s eastern corridor to Lagos and unlock tourism and investment opportunities along the coastline. Tinubu said the project prioritises locally produced cement and steel to stimulate domestic industries, underscoring a “Nigeria first” philosophy.

On national unity, Tinubu said Nigeria’s diversity should be a source of strength rather than division. “All of us together as Nigerians must be patriotic to understand that you have no control where you are born. Your parents could be Igbo, my parents could be Yoruba, you have no control of that. Where you find yourself is your home. This country is ours. We must build it together.”

Addressing regional security and diplomacy, the president stressed the importance of pragmatic partnerships and collaboration with neighbouring countries and global powers. “Security challenges will always be there. Those are things you cannot do alone. You can’t operate the world in isolation.” He maintained that Nigeria still retains its strategic influence and leadership role in West Africa and on the continent. “In ECOWAS, Nigeria is a big brother; in Africa, we are the fat lady. We must sing the tune, we must sing the right tune for others to pay attention to.”

Tinubu