President Bola Tinubu defended the removal of the petrol subsidy during his speech at the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference in Abuja on Tuesday. Represented by Vice President Kashim Shettima, Tinubu explained that the subsidy removal, implemented in May 2023, aimed to redirect resources toward crucial infrastructure investments.

“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services, frequent adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system,” Tinubu stated.

The President praised this year’s CIBN Conference theme, “Accelerating Economic Growth and Development: The State of Play and the Way Forward,” calling it both timely and necessary. He acknowledged the pressing economic issues, such as high inflation, rising living costs, and infrastructure deficits, but also highlighted potential growth opportunities.

“This theme will enable us to evaluate where we stand as a nation, understand the root causes of our economic challenges, and explore actionable strategies to accelerate growth and development sustainably and inclusively,” Tinubu noted, according to a statement from presidential spokesman Stanley Nkwocha.

Tinubu reaffirmed his administration’s commitment to economic reforms, emphasizing efforts to restore confidence in Nigeria’s economy. “We have taken bold steps to reform the macroeconomic environment. Our focus is on restoring confidence in the Nigerian economy through measures aimed at reducing inflation, stabilising the foreign exchange market, and improving fiscal management,” he said.

The President also addressed ongoing infrastructure development initiatives, saying, “We are committed to upgrading Nigeria’s infrastructure to support economic growth. We are investing in roads, railways, and energy projects through public-private partnerships to reduce transportation costs and improve market access.”

Since the subsidy removal on May 29, 2023, which saw petrol prices soar from around N200 to over N1,000 per litre, Tinubu’s decision has faced criticism from various quarters, including labour unions, due to its impact on the cost of living and inflation in Nigeria.