President Tinubu: Eliminating fuel subsidies will save Nigeria but come at a cost.

The next president of Nigeria, Bola Tinubu, asserted that while his decision to end a popular fuel subsidy would increase the burden on the public, it would also free up money for healthcare, regular electricity supply, the development of transportation, and education.
“I understand that the bulk of our population will experience increased stress as a result of the decision. In a broadcast to honor Democracy Day on Monday, Tinubu said, “I know your pain.”
The government spent $10 billion on the subsidies in the previous year, increasing the deficits in the budget and the national debt while maintaining low gasoline prices in the continent’s largest economy for decades.
Fuel costs in Nigeria have nearly tripled, disturbing unions and increasing the cost of transportation. Small businesses and the millions of people who depend on gasoline generators have also been impacted by the erratic grid supplies.
Following his announcement of the end of the gasoline subsidy on May 29, it was his first public comment.
The president argued that Nigerians should decide how to “save our country from going under.”
The man promised, “The government I lead will repay you by making massive investments in transportation infrastructure, education, dependable power supply, healthcare, and other public utilities that will improve people’s quality of lives.”
He did not say when it will happen or in what time range.
The Nigerian government implemented an oil subsidy in the 1970s to lessen the effects of rising global oil prices. Olusegun Obasanjo’s military regime institutionalized the subsidy in 1977 by enacting the Price Control Act, which controlled prices for products like fuel.
The abolition of the fuel subsidy was one of the most significant initiatives Tinubu promised to carry out during the presidential election campaign.
In January 2012, when then-President Goodluck Jonathan announced the end of subsidies, the word “subsidy” immediately spread throughout the nation. Fuel prices increased from 65 to 140 naira ($0.14 to $0.30) per liter, prompting marches for #OccupyNigeria that lasted for almost two weeks.
Labor groups were outraged by the removal of subsidies this time, but after talking with the administration, they have suspended an indefinite strike. The unions’ numerous demands include increasing the monthly minimum wage from its present amount of 30,000 naira (about $65) by a factor of more than six.
Rating agencies Fitch and Moody’s believe that Tinubu’s efforts to harmonize the nation’s several exchange rates and willingness to end fuel subsidies are beneficial to the economy.