Chief Bola Ahmed Tinubu has defended the recent increase in fuel prices, explaining that it is part of efforts to free up budgetary resources for investments in infrastructure and social services.
Tinubu, represented by Kashim Shettima, made this known during the 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers in Abuja on Tuesday.
In a statement by Shettima’s spokesperson, Stanley Nkwocha, Tinubu emphasized that the removal of fuel subsidies was necessary for long-term benefits despite the short-term challenges.
He also highlighted that the move, alongside frequent adjustments of the monetary policy rate, aims to curb inflation and foster a more market-oriented exchange rate system.
He stated, “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.
“To achieve sustained economic growth, we must intentionally align our policies and actions with the changing global landscape.
“The government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development,” he added.
Tinubu called for collaboration between the government, private sector, and civil society to implement reforms that will stabilize the economy, reduce inflation, and drive infrastructural development.
The fuel price hike comes after the removal of fuel subsidies in June 2023, which saw petrol prices rise from N238 to over N500 per liter, and further increases to N897 at Nigerian National Petroleum Company Limited outlets and N980 at other stations. As a result, inflation surged to 33.40% in July 2024.
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