Home ›› 13 Jun 2023 ›› World Biz
Nigeria’s new president Bola Tinubu on Monday urged Nigerians to accept more sacrifice in return for later investments after his government ended a long-standing fuel subsidy in a measure that has spiked petrol, transport and food prices.
Elected in February in a highly contested vote, Tinubu in his first day in office last month called for an end to the fuel subsidy that costs the government billions of dollars to keep consumer prices of petrol artificially low. Nigeria is one of Africa’s biggest oil producers but has little refining capacity.
For decades, it has swapped crude for gasoline that it then subsidises, causing a huge drain on revenue, foreign exchange and contributing to growing debt. Tinubu’s decision has seen petrol prices triple, triggering a spike in transport costs as well as a knock-on impact on food prices and electricity for the many Nigerians who use petrol-run generators for power.
In a national broadcast for Nigeria’s Democracy Day, Tinubu said the end of the subsidies was a painful necessity for the country’s economic well-being.
“Painfully, I have asked you, my compatriots, to sacrifice a little more for the survival of our country. For your trust and belief in us, I assure you that your sacrifice shall not be in vain,” he said. “The government I lead will repay you through massive investment in transportation infrastructure, education, regular power supply, healthcare and other public utilities.”
