In a groundbreaking announcement during his inaugural speech, Nigeria’s new President, Bola Tinubu says the era of subsidy payment on fuel has ended.
He stated that the 2023 Budget made no provision for fuel subsidy and more so, subsidy payment is no longer justifiable.
“The fuel subsidy is gone,” Tinubu declared in his inaugural speech at the Eagle Square on Monday after he was sworn in as President.
This decision marks a significant government policy shift and is expected to have far-reaching implications for the nation’s economy and energy sector.
The move is aimed at addressing longstanding challenges associated with the subsidy system and promoting a more sustainable and transparent approach to fuel pricing.
Tinubu emphasised the need for structural reforms and assured the public of measures to mitigate the impact on vulnerable segments of society.
Tinubu hinged his government on five points. He said “…in the coming days and weeks, my team will publicly detail key aspects of our programme. Today, permit me to outline in broad terms a few initiatives that define our concept of progressive good governance in furtherance of the Nigerian ideal”:
The principles that will guide our administration are simple:
- Nigeria will be impartially governed according to the constitution and the rule of law.
- We shall defend the nation from terror and all forms of criminality that threaten the peace and stability of our country and our subregion.
- We shall remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty.
- In our administration, Women and youth will feature prominently.
- Our government will continue to take proactive steps such as championing a credit culture to discourage corruption while strengthening the effectiveness and efficiency of the various anti-corruption agencies.
The decision has already sparked a wide range of reactions from various stakeholders, with debates on the potential consequences and benefits of this bold move. As the nation awaits further details and implementation plans, the decision to remove fuel subsidy remains a pivotal moment in Nigeria’s economic landscape.