The Nigerian Presidency has revealed that President Bola Ahmed Tinubu’s economic reforms, particularly the removal of fuel subsidies, have saved over 19 states from financial insolvency.
This disclosure was made by Daniel Bwala, Special Adviser to the President on Policy Communication, during an interview on TVC’s This Morning Show.
Bwala explained that before President Tinubu assumed office, many states were on the brink of bankruptcy and struggling to meet basic financial obligations, including salary payments.
However, the implementation of the fuel subsidy removal policy has significantly increased government revenue and improved the financial health of these states.
“The president’s policy of subsidy removal has generated increased revenue. Today, states are no longer discussing insolvency or bankruptcy,” Bwala stated.
The fuel subsidy removal was announced by President Tinubu during his inaugural speech on May 29, 2023. Following the decision, the price of Premium Motor Spirit (PMS) surged from N180 per litre to approximately N620, later escalating to about N1,200 per litre at retail filling stations.
Bwala emphasized that the effects of these reforms are already visible across the country. He noted that the improved financial situation has enabled both federal and state governments to focus on critical issues like poverty alleviation and agricultural development.
“These reforms are designed to create a Nigeria that works for everybody, not just a select few,” he added. Bwala also urged state governments to prioritize economic equality and enhance agricultural production to ensure food security.
