President Bola Tinubu on Thursday, May 29, 2025, reaffirmed the necessity of his administration’s bold economic reforms—scrapping the petrol subsidy and unifying Nigeria’s foreign exchange windows—insisting they were critical to rescuing the nation from fiscal collapse.
In a nationwide address marking his second year in office, Tinubu stated that the policies, implemented immediately after his inauguration on May 29, 2023, were unavoidable despite their painful short-term impacts. He argued that the subsidy regime and multiple exchange rates had become unsustainable, stifling growth and enabling corruption.
“The economic situation I inherited demanded urgent, decisive action,” Tinubu said. “Removing the fuel subsidy and forex distortions was painful but necessary to halt Nigeria’s drift into economic ruin. These systems had become a chokehold on our future.”
Economic Fallout & Public Strain
The reforms triggered significant economic shocks: petrol prices surged from ₦200 to nearly ₦1,000 per litre, while the naira plummeted from ₦800/$1 to approximately ₦1,600/$1. Economists attribute Nigeria’s soaring inflation and cost-of-living crisis largely to these measures.
Defending the Reforms
Tinubu, however, maintained that the policies were vital for long-term stability, citing ongoing efforts to establish a “new national fiscal policy” focused on fair taxation, prudent borrowing, and targeted spending.
“Our goal is to reduce living costs, ensure economic justice, and create an investor-friendly environment,” he said. “The foundation we’re laying today will secure a prosperous future.”
Public Appeal & Future Pledges
Acknowledging citizens’ hardships, the president thanked Nigerians for their resilience and vowed to intensify efforts to curb inflation, enhance security, and combat poverty.
“We are halfway through this journey,” Tinubu declared. “My pledge remains unwavering: to rebuild trust, restore economic health, and lift millions out of poverty.”
While the administration insists the reforms will yield benefits, critics highlight lingering public discontent over rising prices and stagnant wages. Analysts urge faster palliative measures to cushion the ongoing transition.
