Tinubu Defends Petrol Price Hike, Other Reforms, Says They’re Necessary for Economic Growth

President Bola Tinubu has finally broken his silence regarding the recent spike in the price of Premium Motor Spirit (PMS), popularly known as petrol, which has ignited widespread concern and protest across the country.

Speaking to a gathering of Nigerians in China on Friday, Tinubu defended his administration’s decision, explaining that the increase in fuel prices, along with other reforms, is part of a broader strategy aimed at setting Nigeria on a path toward long-term economic growth.

Tinubu’s comments come at a critical moment, as the Nigerian National Petroleum Company Limited (NNPCL) recently raised the pump price of petrol to as high as N855 per liter at its outlets, triggering long queues and public outrage. The price hike has been met with condemnation from many quarters, with several groups and prominent individuals calling for a reversal.

Defending Economic Reforms

In his address, Tinubu pointed out that Nigeria is in the midst of significant reforms and that bold decisions are necessary to navigate the country through its current economic challenges. He argued that while the reforms may seem tough in the short term, they are essential for paving the way for long-term prosperity.

“Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices,” the president said, according to his spokesperson, Ajuri Ngelale.

Tinubu stressed that hard decisions are vital for setting Nigeria on the right path, noting that expecting everything to come without sacrifice would only delay meaningful progress.

“What is the critical part to get us there if we cannot make hard decisions to pave the way for a country that is blessed and so talented?

“The more you want everything free, it will become more expensive and long-delayed to achieve meaningful development,” he added, defending the hike as part of a necessary economic strategy.

Public Outcry and Calls for Reversal

The timing of the pump price increase has only added to the frustration among Nigerians, who are already grappling with a deepening inflation crisis. With essential goods and services becoming increasingly expensive, many have argued that the hike in fuel prices only worsens the hardship faced by the general population.

Alhassan Ado-Doguwa, chairman of the House of Representatives Committee on Petroleum Resources (Upstream), was among the voices calling for immediate action. In a statement, Doguwa asked the federal government and NNPCL to reverse the recent hike, stating that Nigerians are already burdened with enough challenges.

“We urge the federal government and, of course, the NNPCL to consider the plight of Nigerians and suspend this recent increase in pump price,” Doguwa said, labeling the move as “unacceptable.” He added that private companies were taking advantage of gaps in the system to make profits at the expense of ordinary Nigerians and warned that such actions could hinder the country’s progress.

Doguwa’s remarks echo the sentiments of many Nigerians who feel that the government’s reforms, while necessary, should not come at such a heavy cost to the populace. Several civic groups have also called on the government to reconsider its stance, arguing that the timing of the hike is especially damaging, given the broader economic hardship in the country.

While the removal of the fuel subsidy was seen as a necessary step to curb wasteful spending and redirect funds to other critical areas, the immediate impact has been a sharp rise in fuel prices, making transportation, goods, and services more expensive.

The controversial decision, which has been delayed for a long time due to its short-term implications, was announced by Tinubu during his inaugural address on May 29, 2023.

Tinubu: “Hard Decisions Are Crucial”

During his speech in Beijing, Tinubu explained that hard decisions are necessary for Nigeria’s development, pointing to China’s infrastructure as a model that Nigeria can emulate if it stays the course. He stated that Nigeria needs to make the kind of difficult choices that will lay the groundwork for future development, noting that quality infrastructure such as roads, electricity, and schools cannot be built without taking some bold economic measures.

“But can we help it? Can we develop good roads like you have here? You see electricity being constant in quantity and quality. You see water supply, constant and running, and you see their good schools,” Tinubu stated. “We are focused, and I have a very good team,” he assured the audience.

The president also mentioned his desire to replicate China’s infrastructure development model in Nigeria, suggesting that the sacrifices Nigerians are currently making could lead to long-term benefits.

While the president has emphasized that the decisions are necessary for sustainable development, critics have reminded him of the role he played in 2012, when former President Goodluck Jonathan removed fuel subsidy, moving pump price from N65 to N140 per liter. Tinubu, who was in opposition then, headed a nationwide protest that forced Jonathan to reverse the decision.

Brace for Higher Prices

Tinubu’s defense of his administration’s reforms is understood to mean that Nigerians should prepare for further fuel price hikes. The president’s remarks come alongside speculations that petrol could soon sell for as much as N1,000 per liter, with market forces driving the prices.

Following the commencement of petrol production from the Dangote Refinery, NNPCL has declared that market forces, not government intervention, will determine petrol prices in the deregulated market. This implies that Nigerians will need to brace for price hikes.