Tinubu's subsidy removal policy saved over 19 states from bankruptcy - Presidency The Presidency has commended President Bola Ahmed Tinubu's subsidy removal policy for saving over 19 states from the brink of bankruptcy.
This was disclosed by Daniel Bwala, Special Adviser to the President on Political Communication, during an appearance on TVC's This Morning Show on Thursday.
Bwala noted that the subsidy removal, one of Tinubu's first economic reforms, has significantly increased government revenue and stabilized the finances of many states.
"Before President Bola Tinubu came to office, it was reported that over 19 states in the Federation were bankrupt, insolvent and unable to pay salaries. The President's subsidy removal policy has generated increased revenue. "Today, states no longer talk about bankruptcy or insolvency," Bwala explained.
He also noted that the reforms have created opportunities for states to refocus governance and deliver on their promises to the electorate.
"Fuel subsidy is gone," President Tinubu announced during his inaugural address on May 29, 2023 in Abuja.
This announcement led to a significant increase in the price of PMS, from N180 to about N620 per litre, and a rise a year later to about N1,200 at retail petrol stations.
A Nigeria that works for all
Bwala explained that the effects of Tinubu's policies are already being felt across the country. "The Nigerian people can see the visible, tangible and tangible effects of these policies. These reforms are designed to create a Nigeria that works for all, not just a privileged few," he said.
According to Bwala, the improved financial stability among the states has enabled the federal and state governments to address critical issues such as poverty reduction and agricultural development.
"We urge the states to do themselves a favor and fulfill the promises they made by ensuring economic equality and intensifying agriculture to increase food security," Bwala added.
FG, Interstate Cooperation
The Special Adviser called on Nigerians to be patient and support the President's reform agenda, which is aimed at transforming the country's economic landscape. "All [Nigerians] are patiently following the president as he guides us through this reform process. "We are on our way to a point where Nigeria works for all," Bwala said.
The subsidy elimination policy has drawn both praise and criticism, but its fiscal benefits seem undeniable. Analysts have noted that freeing up resources previously spent on fuel subsidies has given states the fiscal space to invest in critical sectors such as education, health and infrastructure.
Savings from subsidy removal: In November 2024, the presidency said that $7.5 billion would be saved annually from funds previously allocated for fuel subsidies after their removal.
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