Fuel Subsidy Removal Was Necessary From President Tinubu – Atiku Bagudu

The Minister of Budget and Economic Planning, Atiku Bagudu has come out to defend President Bola Tinubu’s economic reforms and the removal of the fuel subsidy.

He recently had his say while speaking to the press, and Nigerians have been reacting.

According to him, he supports the move completely because Nigeria is clearly transitioning to Compressed Natural Gas as a more affordable energy source, especially for transportation.

He added that it became evident that we would not achieve our economic objectives if we continued on the previous path.

His words, “The President addressed the fuel subsidy issue and the debate surrounding CNG adoption. While this transition may cause temporary shocks, particularly for vulnerable groups, with the right measures in place, we can build a more competitive energy sector that will drive growth.

Our economy is currently small. The federal budget is approximately $20 billion. When compared to countries with similar populations, such as Indonesia, with a federal budget of $213 billion, or Brazil, with $750 billion, it becomes evident that we cannot achieve our economic objectives if we continue on this path. Our revenue must be higher.

The clearest sign of this is seen in the monthly federal allocation meetings, where we distribute less than $2 billion across the three tiers of government. Even with this, the total is only $24 billion annually, which is insufficient. State governments that depend heavily on this allocation are under severe strain.

A key focus area is managing our foreign exchange. We do not have enough foreign currency reserves, so it is essential for the Central Bank to operate independently.

The President supports this, following the examples of other nations that have faced similar challenges. A market-based system, rather than one that selects winners and losers, will attract more revenue and help stabilise the exchange rate.”

WOW.