The Nigerian Presidency has said President Bola Ahmed Tinubu’s economic reforms, particularly the removal of fuel subsidies, saved over 19 states from bankruptcy.
According to Daniel Bwala, Special Adviser to the President on Policy Communication, the subsidy removal policy has significantly increased government revenue and stabilized the finances of many states.
Bwala revealed that before President Tinubu took office, over 19 states were struggling to pay salaries and were on the verge of bankruptcy. However, thanks to the president’s policy, these states are now in a better financial position.
“The president’s policy of subsidy removal has generated increased revenue. Today, states are no longer discussing insolvency or bankruptcy,” Bwala explained during an appearance on TVC’s This Morning Show.
President Tinubu announced the removal of fuel subsidy during his inaugural address on May 29, 2023. The move led to an increase in the price of PMS, rising from N180 to about N620 per litre and later to approximately N1,200 at retail filling stations.
Bwala said the effects of President Tinubu’s policies are already being felt across the country, noting that the Nigerian people can see the visible, touchable, and feelable effects of these policies.
“These reforms are designed to create a Nigeria that works for everybody, not just a select few,” he stated.
He said the improved financial stability among states has also allowed the federal and state governments to address critical issues such as poverty alleviation and agricultural development.
“We are asking the states to do us a favour and deliver on the promises they made by ensuring economic equality and ramping up agriculture to boost food security,” Bwala added.
