The Nigerian Presidency has announced that President Bola Ahmed Tinubu’s economic reforms, particularly the elimination of fuel subsidies, have rescued over 19 states from the brink of bankruptcy.
Daniel Bwala, the President’s Special Adviser on Policy Communication, stated that the removal of subsidies has significantly boosted government revenue and improved the financial stability of numerous states.
Bwala noted that prior to President Tinubu’s administration, many states were struggling to meet payroll and faced imminent insolvency. However, due to the president’s policy changes, these states have since improved their financial outlook.
“The subsidy removal initiative has led to an increase in revenue for the government. Today, states are no longer facing discussions of insolvency,” Bwala explained during an interview.
President Tinubu announced the removal of the fuel subsidy in his inaugural address on May 29, 2023. This decision resulted in a surge in the price of Premium Motor Spirit (PMS), which jumped from N180 to around N620 per litre, and later soared to approximately N1,200 at retail stations.
Bwala emphasized that the impacts of President Tinubu’s policies are already observable nationwide, indicating that the Nigerian populace is witnessing tangible benefits from these reforms.
“These changes are intended to create an inclusive Nigeria that benefits everyone, not just a privileged few,” he asserted.
He further mentioned that the enhanced financial condition among states has enabled both federal and state governments to tackle pressing issues, including poverty reduction and agricultural advancement.
“We urge the states to fulfill their commitments by promoting economic equality and enhancing agricultural efforts to ensure food security,” Bwala concluded.
