Jonathan Nwokpor
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According to President Bola Ahmed Tinubu, the recent increase in fuel prices was required to free up funds for infrastructure projects such as constructing new roads.
During his Tuesday speech at the ongoing 17th Annual Banking and Finance Conference hosted by the Chartered Institute of Bankers in Abuja, Vice President Kasim Shettima who represented Tinubu revealed this.
Tinubu stated that the goal of this administration’s economic reforms, such the elimination of gasoline subsidies, was to free up budgetary resources in a statement released by Stanley Nkwocha, Shettima’s spokesperson.
He went on to say that the nation’s regular interest rate adjustments, which kept the rate at 26.75 percent, were intended to combat inflation and promote an exchange rate system that was more in line with the market.
“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,” he said.
In an address to the nation, President Tinubu called for cooperation between the public and private sectors as well as civil society organisations. He stated, “We must intentionally align our policies and actions with the changing global landscape in order to achieve sustained economic growth.”
“The government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development,” he added.
The news comes amid widespread discontent among Nigerians over the recent increase in gas prices, which went from N617 to N720 per litre at Nigerian National Petroleum Company Limited retail stores to N897 per litre at other filling stations.
The government removed gasoline subsidies earlier in June of last year, which caused the price of petrol to rise from N238 to almost N500 per litre.
As a result, the nation’s inflation increased from 24.08 percent at the same period last year to 33.40 percent in July 2024.
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