In a national address to Nigerians on Sunday, President Bola Ahmed Tinubu acknowledged the deep frustration felt by Nigerians over the removal of fuel subsidies, framing the move as a painful but necessary step for the country’s economic recovery.
The President’s address came in response to significant unrest across the country, with demonstrations escalating into violent clashes and property damage in several states, including Borno, Jigawa, Kano, and Kaduna.
The widespread protests and unrest began on August 1.
“I am especially pained by the loss of lives and the destruction of public facilities,” Tinubu said, highlighting the stark contrast between the intended peaceful protests and the resultant chaos.
Tinubu expressed deep sympathy for the families affected by the violence, stating, “We must stop further bloodshed, violence, and destruction.”
He emphasised that while the protests were rooted in genuine dissatisfaction, the administration’s priority was to restore order and prevent further escalation.
A central focus of Tinubu’s address was the controversial removal of fuel subsidies.
The President defended this decision, describing it as a critical measure to correct longstanding economic distortions.
“For decades, our economy has remained anaemic,” he said.
“I therefore took the painful yet necessary decision to remove fuel subsidies and abolish multiple foreign exchange systems which had constituted a noose around the economic jugular of our nation.”
Critics argue that these subsidies disproportionately benefited the wealthy and led to widespread corruption.
Tinubu’s administration has framed the removal as a necessary step to address these inefficiencies and stabilize the economy.
The #EndBadGovernance protests, which began on August 1, have been fuelled by widespread discontent over economic hardship and government policies.
Thousands have joined the demonstrations, demanding government action to address the high cost of living and other socio-economic issues.
However, several incidents of violence, including deaths and looting, have marred the protests, exacerbating the already tense situation and prompting calls for the protests to end.
The South East and South West have largely seen peaceful rallies.
The removal of fuel subsidies has been a contentious issue in Nigeria, where subsidies had long been a significant part of the national budget.
Tinubu argued that the subsidies had facilitated smuggling and rent-seeking, which in turn undermined the economy.
“These actions blocked the greed and the profits that smugglers and rent-seekers made,” he noted.
Despite the pain caused by the subsidy removal, Tinubu pointed to significant economic progress made under his administration.
“Aggregate government revenues have more than doubled, hitting over 9.1 trillion Naira in the first half of 2024,” he reported.
He attributed this improvement to efforts to block revenue leakages and enhance financial management.
Tinubu also highlighted reductions in debt servicing from 97% to 68% of government revenues and progress in clearing foreign exchange obligations.
These measures have provided more financial freedom to invest in essential services like education and healthcare.
“We have also embarked on major infrastructure projects across the country,” Tinubu said, detailing ongoing work on critical highways and energy projects.
The President touted the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway as key projects aimed at boosting economic output and creating jobs.
The President’s address included a strong emphasis on supporting Nigeria’s youth and expanding infrastructure.
Tinubu highlighted several initiatives aimed at empowering young Nigerians, including the establishment of a student loan scheme and a Consumer Credit Corporation to facilitate access to essential products.
He also outlined plans to distribute one million Compressed Natural Gas (CNG) conversion kits to commercial vehicles, aimed at reducing transportation costs and curbing inflation.
“We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent,” Tinubu said.
In addition to these measures, Tinubu announced the launch of several youth-focused programs, including the Digital and Creative Enterprises (IDiCE) programme, which has already secured $620 million in funding.
Despite some setbacks, such as vandalism of digital centers during the protests, the administration remains committed to these initiatives.
Tinubu’s address also touched on efforts to boost food production and provide affordable housing.
