Subsidy Removal Will Free Up Resources For Critical Investments – Tinubu

President Bola Tinubu has defended his administration’s decision to remove the subsidy on Premium Motor Spirit (PMS), commonly known as petrol, during the opening of the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference held in Abuja on Tuesday.

Represented by Vice President Kashim Shettima, President Tinubu articulated that the removal of the subsidy was a necessary step to liberate financial resources for crucial investments across the country.

According to the President, this move is part of broader reforms aimed at revitalizing Nigeria’s macroeconomic environment and restoring confidence in the nation’s economy.

He emphasized the importance of these reforms at a time when Nigeria faces numerous interconnected challenges.

The theme of this year’s CIBN conference, ‘Accelerating Economic Growth and Development: The State of Play and the Way Forward,’ was highlighted by Tinubu as both timely and imperative, underlining the critical juncture at which the Nigerian economy currently stands.

The conference serves as a platform for financial experts and policymakers to deliberate on strategies for economic advancement amidst these reforms.

President Tinubu said, “We have taken bold steps to reform the macroeconomic environment. Our focus is on restoring confidence in the Nigerian economy through measures aimed at reducing inflation, stabilising the foreign exchange market, and improving fiscal management.

“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.”

President Tinubu also noted that his administration is committed to strengthening infrastructure development in the ongoing bid to grow Nigeria’s economy.

Tinubu also called for collaboration across all sectors, including the government, private industry, and civil society organisations, saying, “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.”

Speaking earlier, President/Chairman of CIBN, Prof. Pius Deji Olanrewaju, called for urgent introspection on Nigeria’s economic challenges, stressing the need for innovative solutions.

“We are on a journey to economic growth and prosperity,” Olanrewaju stated, acknowledging however that “the current challenges are things of concern.”

He emphasised that while the Central Bank of Nigeria has introduced several monetary policies to address these issues, their success hinges on “the professionalism and patriotism of operators in the financial services sector.”

In his goodwill message, Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, said his Agency will help to sanitize the financial system and instill laws that fight financial crimes.

While noting that economic policies will progress where profit is not prioritized by stakeholders but the interest of the nation, the EFCC boss admonished bankers to have renewed commitment to services that will promote economic development and nation-building.