President Bola Ahmed Tinubu says recent fiscal policy decisions, including the removal of fuel subsidies and the enactment of new tax laws, are part of a broader plan to build a diversified and self-sustaining Nigerian economy less dependent on oil.
Speaking on Monday through the Minister of State for Finance, Doris Uzoka-Anite, at the National Conference on Public Accounts and Fiscal Governance in Abuja, Tinubu outlined the rationale behind his administration’s economic strategy. The event was themed “Fiscal Governance in Nigeria: Charting a New Course for Transparency and Sustainable Development.”
The president described Nigeria’s prolonged reliance on oil revenue as a source of structural inefficiencies and fiscal vulnerabilities, adding that the government was working to shift the foundation of the economy toward sectors such as agriculture, manufacturing, digital services, renewable energy, mining, and the creative industries.
“For decades, our economy has been constrained by overreliance on oil revenues, underinvestment in key sectors, and limited capacity for social spending,” Tinubu said.
“One such decision was the removal of the petroleum subsidy—a longstanding policy that had, over time, become a significant drain on public finances, riddled with inefficiency, opacity, and abuse.”
He said the government spent over ₦4 trillion on subsidies in 2022 alone, a figure he described as unsustainable and misaligned with national development goals.
According to the president, funds previously allocated to subsidising fuel have since been redirected to social protection and capital projects.
“Since its removal, we have redirected those funds into targeted interventions: expanding social safety nets, improving public transportation, and financing critical infrastructure projects,” he said.
Tinubu also referenced the introduction of new tax reform laws, stating that they are designed to widen the tax base, especially by integrating the informal sector, and simplify compliance for small and medium-sized enterprises (SMEs).
He said the reforms also aim to digitalise revenue collection and eliminate multiple taxation.
“A modern, transparent, and fair tax system is not just a revenue tool but a governance imperative,” Tinubu said. “Through these reforms, we are building the foundation of a self-sustaining economy where reliance on volatile oil revenues will gradually give way to a more diverse and inclusive revenue base.”
The president added that his administration had established the National Credit Guarantee Company to increase access to finance for local businesses and deepen the country’s non-oil export base.
He emphasised the importance of collaboration between fiscal and monetary authorities, stating that his administration is now working more closely with the Central Bank of Nigeria (CBN) to stabilise the naira, rein in inflation, and improve investor confidence.
“We are addressing structural bottlenecks, especially in food supply chains, and exercising discipline in public spending to tackle inflation,” Tinubu said.
Addressing governance reforms, Tinubu said his government had enhanced the role of the Office of the Auditor-General, improved procurement processes, and expanded the use of digital financial systems across federal agencies.
The president urged the National Assembly to prioritise its oversight function, particularly through its public accounts committees.
“Oversight is not a political tool; it is a patriotic duty,” he said, adding that transparency and accountability are central to the government’s development agenda.
