Tinubu Defends Fuel Price Hike, Says It Will Fund Infrastructure Investments
President Bola Ahmed Tinubu has defended the recent fuel price hike, stating that it was necessary to free up resources for critical infrastructural investments such as roads. Tinubu, represented by Vice President Kashim Shettima, made this assertion on Tuesday at the ongoing 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers in Abuja.
In a statement released by Shettima’s spokesperson, Stanley Nkwocha, Tinubu emphasized that the economic reforms implemented by his administration, including the removal of the fuel subsidy, were designed to free up budgetary resources. He further explained that the frequent adjustments to the interest rate, which currently stands at 26.75 percent, were aimed at curbing inflation and fostering a more market-oriented exchange rate system.
“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,” Tinubu stated. “The frequent adjustment of the monetary policy rate is a move aimed at curbing inflation and fostering a more market-oriented exchange rate system.”
President Tinubu called for collaboration across all sectors, including government, private industry, and civil society organizations, to achieve sustained economic growth. He noted, “To achieve sustained economic growth, we must intentionally align our policies and actions with the changing global landscape.”
He added that the government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development.
The fuel price hike has caused widespread concern among Nigerians, with petrol prices reaching N897 per liter at Nigerian National Petroleum Company Limited (NNPC) retail outlets and N980 at other filling stations, up from N617 and N720, respectively. The increase follows the government’s announcement of the removal of fuel subsidies in June last year, which saw petrol prices rise to over N500 per liter from N238.
This policy shift has also contributed to the country’s inflation rate, which surged to 33.40 percent in July 2024, compared to 24.08 percent in the same period last year.
