President Bola Ahmed Tinubu’s decision to remove subsidy on petrol has been hailed as one of his administration’s most commendable actions to date.
The subsidy removal, announced during Tinubu’s inaugural address on May 29, 2023, is one the government’s economic reforms aimed at addressing corruption and financial strain on the nation’s economy.
The fuel subsidy, which was costing the Nigerian government an estimated $10bn annually, had long been criticised as a source of widespread corruption.
But the removal, which instantly resulted in pump price increase at fuel stations, has been lauded by international bodies such as the World Bank as a positive step for Nigeria’s economic future.
According to a joint statement by Comrade Lucky Emonefe, President of the National Association of Nigerian Students (NANS), and Akinteye Afeez Babatunde, President of the Senate, NANS HQ, the subsidy removal has already begun to yield positive outcomes.
They noted that state governments have seen increased allocations and received bailout funds from the federal government.
One of the most significant achievements is the realization of the Nigerian Education Loan Fund (NELFUND), according to NANs, which hailed the government’s commitment to financial prudence.
The association added that Nigeria has been able to manage debt repayments and salary disbursements without resorting to external borrowing, which further noted as a marked improvement from previous practices.
However, the decision has not been without its challenges. The National Labour Congress (NLC) initially called for nationwide strikes and protests over the increase in fuel prices, though these were later suspended as negotiations with the government continued.
The NANS leadership called on all stakeholders in the oil and gas sector to show patriotism by avoiding unjustified price hikes.
They also urged students and the general public to disregard negative propaganda against the current administration, noting that the subsidy removal is a necessary step towards sustainable economic growth.
The Federal Government had pledged to redirect the funds saved from the subsidy removal into critical sectors of the economy.
The strategy seeks to incentivize domestic refineries, reduce dependency on imported fuel, boost employment, and support the development of essential public services.
NANS appealed to the Federal Government to channel more funds towards education and youth development which it said are crucial for the country’s future prosperity.
Fuel Subsidy Removal One Of Tinubu’s Best Decisions — NANS is first published on The Whistler Newspaper