Tinubu: Fuel Subsidy Removal, Tax Reforms Painful Steps To Keep Nation’s Economy Afloat

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

Deji Elumoye in Abuja

President Bola Tinubu for the umpteenth time on Friday rose in defence of the removal of fuel sibsidy and unification of the foreign exchange market in the first few days of his government in 2023.
Describing both ‘critical’ measures as painful but necessary decisions needed to keep the nation’s economy afloat, the President likened the pains associated with the reforms to childbirth, saying temporary hardship would ultimately produce long-term benefits for Nigerians.
“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, who spoke at an interview session at Day Two of Africa CEO Forum in Kigali, Rwanda, explained that continuing with the old subsidy regime would have amounted to spending the future of unborn generations.
Tinubu declared: “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 prior to the reforms, many states were struggling to meet basic obligations, including salary payments.
According to him: “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.”
Envisaging his possible re-election athe poll in 2027, the President projected that the first two years of a possible second term in office would be devoted to “more work”.
He insisted that his administration would continue to pursue difficult but necessary reforms aimed at resetting Nigeria’s economy and securing the future of coming generations.
Tinubu said the philosophy guiding his administration was rooted in decisive leadership and the courage to take difficult decisions in the interest of the people.
His words: “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 for a second term.
“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 necessary instrument for development, arguing 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?” the President asked.
Tinubu further explained that tax-paying was a critical civic responsibility, declaring that “a citizen that pays taxes is a citizen, whether corporate or individual.”
Shedding more light on what he described as early gains from the reforms, the President said the economy had become more stable and predictable, enabling better planning by businesses and households.
“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.”
Tinubu also disclosed that the government was implementing direct cash transfers to poor households while also 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.”
The President said his government’s focus on industrial policy was not necessarily on “protection” but on support for businesses capable of creating jobs and stimulating domestic production, citing Dangote Refinery and BUA Group as examples of local enterprises deserving government backing.
Tinubu explained that his 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.
The President also defended the ongoing Lagos-Calabar Coastal Highway project, describing it as part of a broader national integration and economic inclusion agenda.
According to him, the road would connect Nigeria’s eastern corridor to Lagos and unlock tourism and investment opportunities across the coastline.
He declared that his philosophy is Nigeria first explaining that locally produced cement and steel were deliberately prioritised for the project to stimulate domestic industries.
Commenting on national unity, Tinubu said Nigeria’s diversity should be a source of strength rather than division.
Said he: “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.”
On 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 retained 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 was also quick to dismiss suggestions that Nigeria had lost diplomatic relevance in recent years, insisting that the country remained central to regional peace and stability efforts.
According to him: “Nigeria is still there. Collaboration with trainings and support. Yes, challenges will always be there; there are troublemakers all over.But you have to just be focused and be alert. Nigeria is ready.”