President Bola Ahmed Tinubu has boldly declared that the fuel subsidy regime he ended was not a solution but a slow killer of Nigeria’s future, insisting the nation had no choice but to embrace painful but necessary reforms to avoid total economic collapse.
“Two years ago, you entrusted me with the sacred responsibility to lead our nation at a time of historic challenges. Together, we faced those headwinds with courage and determination,” the President said in a national address marking his second year in office.
Tinubu said the country was headed for disaster before he stepped in, revealing that his administration inherited a battered economy and had to make swift, tough decisions to avoid a total breakdown.
“We removed decades-long fuel subsidies and dismantled the corruption-ridden multiple exchange rate windows. These were no longer sustainable and had become a chokehold on our nation’s neck, strangling our future,” he declared.
He defended the economic reforms that led to a steep rise in living costs, saying the alternative would have been far worse—runaway inflation, massive fuel shortages, external debt default, and a crashing Naira.
While acknowledging the pain that followed the fuel subsidy removal, Tinubu said signs of recovery are now visible. Inflation is beginning to ease, food prices—especially rice—are dropping, and the oil and gas sector is bouncing back, with rig activities increasing by over 400%.
Aside the fuel subsidy removal, the President also listed major wins in his two years, including over 900,000 beneficiaries of the Presidential Loan and Grant Scheme, over 300,000 students supported through the Student Loan Scheme, and more than $10 billion in foreign exchange debts cleared.
He highlighted significant infrastructure strides: over 440 road projects underway and more than 2,700km of superhighways under construction. Tinubu also cited Nigeria’s 3.84% GDP growth in Q4 2024—the highest in three years.
The country’s external reserves, he noted, have grown from just under $4 billion in 2023 to over $23 billion in 2024. The debt-service-to-revenue ratio has dropped from nearly 100% to under 40%, and the controversial Central Bank “Ways and Means” financing has been discontinued.
The President added that with subsidies gone, the NNPC has become a net contributor to the Federation Account, while local refining is helping secure fuel supply.
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On revenue generation, he celebrated a jump in Nigeria’s tax-to-GDP ratio from 10% to 13.5%. He assured Nigerians that critical sectors like food, education, and healthcare now attract 0% VAT, with rent, public transport, and renewable energy fully exempt.
“This is not just about revenue. It is about inclusive economic growth. This is about economic justice,” he said.
Tinubu also spoke on youth empowerment and innovation, pointing to electric vehicle assembly, drone engineering, and digital expansion through Innovate Naija and NASENI’s reboot.
“This is the movement we promised—a government of action powered by the energy and innovation of young Nigerians,” he said.
On security, the President said he has ordered service chiefs to collaborate better and eliminate threats across the country.
He announced plans for the Motherland Festival, an international cultural event that will present Nigeria’s rich heritage and creativity to the world.
“Our journey is not over, but our direction is clear. So is our resolve. By the Grace of God, the worst is behind us,” he said. “The real impact of our governance is beginning to take hold. The future is bright—and together, we will build a stronger, more inclusive Nigeria.”
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