Tinubu rules out subsidy return, insists economic reforms must deliver jobs, prosperity

• Bagudu says FG’ll stay the course despite hardship, opposition pressure

From Adesuwa Tsan, Abuja

President Bola Tinubu has ruled out a return to the petrol subsidy regime, insisting that his administration will sustain its economic reforms despite mounting pressure over the rising cost of living, but declared that the ultimate measure of their success must be the creation of jobs, improved livelihoods and shared prosperity for Nigerians.

The president’s position was reinforced yesterday by the Minister of Budget and Economic Planning, Abubakar Bagudu, who said the administration would not reverse reforms it considered necessary to stabilise the economy, although it remained open to policy adjustments to cushion their impact on households and businesses.

Tinubu also called for stronger defence partnerships among African countries, insisting that military cooperation must extend beyond equipment purchases to technology transfer, local manufacturing and the development of indigenous capabilities to confront terrorism, insurgency and other emerging security threats.

The declarations came at separate engagements in Abuja and Lagos, against the backdrop of growing political debate over the administration’s economic policies and renewed security concerns following the killing of worshippers, vigilantes, women and children in Binari community, Karim-Lamido Local Government Area of Taraba State.

At the 32nd Nigerian Economic Summit (NES32) in Abuja, Tinubu, represented by Vice-President Kashim Shettima, acknowledged that favourable economic statistics would mean little unless they translated into productive employment, increased purchasing power and better living conditions for ordinary Nigerians.

The summit, themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity”, brought together government officials, business leaders, organised labour, development partners and other stakeholders to examine how the country’s economic recovery could deliver measurable benefits to citizens. Tinubu maintained that his administration’s reforms were dismantling longstanding structural barriers, restoring investor confidence and strengthening the foundations for sustainable economic growth.

He disclosed that Nigeria’s inflation-adjusted Gross Domestic Product (GDP) grew by 3.89 per cent in the first quarter of 2026, compared with 3.13 per cent in the corresponding period of 2025.

According to him, non-oil activities accounted for 96.08 per cent of GDP, while manufacturing and the oil sector recorded growth rates of 3.29 per cent and 2.67 per cent, respectively.

The president, however, stressed that the administration’s ambition went beyond improved macroeconomic indicators to ensuring that economic growth created quality jobs, raised productivity and improved the welfare of citizens.

He identified agriculture, manufacturing, energy, infrastructure and solid minerals as critical sectors requiring sustained public and private investment to diversify the economy, expand employment opportunities and reduce dependence on crude oil earnings.

Tinubu said improved electricity supply, efficient transportation networks, access to finance and stronger domestic production capacity were essential to lowering business costs and encouraging industrial expansion.

He also emphasised the need to move beyond exporting raw materials towards local processing, manufacturing and value addition, particularly in agriculture and solid minerals, where Nigeria possesses considerable untapped potential.

The president called for closer collaboration between government and the private sector, maintaining that economic transformation required investment, innovation, entrepreneurship and policies that would enable businesses to expand.

He insisted that the success of the reforms would ultimately be judged by their ability to create opportunities for young Nigerians and ensure that the benefits of economic growth reached households and communities across the country.

Reinforcing the president’s position at the summit, Bagudu declared that the administration would not abandon its reform programme or restore the petrol subsidy, notwithstanding the economic difficulties confronting Nigerians.

“For those of us serving under the President and Vice President, the instruction has been clear: we must stay the course.”

The minister’s declaration came amid promises by opposition politicians, including African Democratic Congress (ADC) presidential candidate Atiku Abubakar, to restore the petrol subsidy as part of measures to reduce the rising cost of living.

Bagudu argued that returning to the previous subsidy arrangement would reverse the progress recorded under the reforms and reintroduce distortions the government had sought to eliminate. “There will be no return to the fuel subsidy and the economic distortions associated with the previous system,” he declared.

He recalled that Tinubu had presented a memorandum to the National Economic Council in October 2025 on the sustainability of the reforms, acknowledging differing opinions and the need to establish a framework for maintaining policy continuity.

The minister explained that sustaining the reforms did not mean refusing to make adjustments where necessary, particularly to address the pressures facing vulnerable households and businesses.

“The task before us is to sustain progress, improve implementation, address the challenges facing households and businesses, and ensure that economic growth translates into jobs, productivity and shared prosperity for Nigerians,” he said.

Bagudu acknowledged that Nigerians continued to face considerable economic difficulties, stressing that policy implementation must be accompanied by interventions that protect vulnerable populations, support domestic production and improve livelihoods.

He said increased revenues accruing to federal, state and local governments provided opportunities to expand infrastructure, improve public services and stimulate economic activities, but warned that stronger coordination among the three tiers of government was necessary to convert additional resources into measurable development outcomes.

According to him, the administration’s ambition of building a $1 trillion economy by 2030 would require sustained investment, higher productivity, greater industrial capacity and stronger private-sector participation.

As part of efforts to ensure that economic growth reaches communities beyond major urban centres, Bagudu highlighted the Renewed Hope Ward Development Plan, designed to identify and unlock productive opportunities across Nigeria’s 8,809 wards.

He explained that the initiative would identify the economic strengths of individual communities and support activities in agriculture, fishing, livestock production, textiles and other enterprises capable of generating employment and increasing household incomes.

The minister said the programme was intended to broaden the foundations of national growth by creating opportunities for rural communities to participate meaningfully in the economy.

On agriculture, Bagudu identified access to farm inputs, financing, mechanisation, irrigation, storage, processing and transportation as critical to improving food production and affordability.

He said the National Agricultural Mechanisation Policy and the National Agricultural Mechanisation Investment Strategy would support efforts to improve productivity, reduce post-harvest losses and strengthen agricultural value chains.

Bagudu also identified the Nigeria Industrial Policy 2025 and the Nigeria First Policy as instruments for promoting domestic manufacturing, local value addition and stronger supply chains while reducing dependence on imported goods.

He disclosed that the Federal Government was collaborating with the European Union and the European Bank for Reconstruction and Development on a fibre-optic infrastructure initiative involving approximately 90,000 kilometres of network deployment to expand broadband connectivity and support business growth.

The minister stressed that investments in education, healthcare, technical skills and digital literacy were equally necessary to prepare young Nigerians for the changing demands of the labour market, particularly as artificial intelligence and other emerging technologies reshape industries.

He also called for improved access to finance for micro, small and medium enterprises, citing a proposed credit guarantee framework intended to help viable businesses overcome financing constraints.

Bagudu urged government and private-sector stakeholders to mobilise domestic and international capital, deepen public-private partnerships and strengthen capital markets to bridge Nigeria’s development financing gap.

Meanwhile, Tinubu extended his emphasis on productive investment and institutional capacity to Africa’s defence and security architecture, urging countries on the continent to pursue partnerships that would strengthen indigenous military industries rather than perpetuate dependence on foreign suppliers.

Speaking through Senate President Godswill Akpabio at the opening of the Africa International Defence Exhibition (AFRIDEX) 2026 in Lagos, the president said defence agreements must be structured to promote technology transfer, develop skilled personnel and strengthen local industries capable of maintaining military equipment.

“Every major acquisition should help develop skills, transfer knowledge, strengthen local industry and deepen our capacity to maintain what we operate,” he said.

“The measure of a successful partnership is the capability it leaves behind. African engineers must gain expertise; African enterprises must grow; African institutions must become stronger.”

Tinubu said the growing complexity of security threats across Africa demanded stronger institutions, reliable partnerships and sustained investment in military capabilities.

He noted that threats stretching from the Gulf of Guinea through the Sahel to cyberspace were increasingly interconnected, with serious consequences for lives, livelihoods, international trade and economic development.

“Nigeria speaks from experience. We know the cost of insecurity: the lives lost, the communities displaced, the livelihoods interrupted and the opportunities denied,” he said.

The president identified terrorism, insurgency, banditry, piracy and other transnational crimes as major threats confronting Nigeria and other African countries, while commending members of the Armed Forces for their sacrifices.

He maintained that African-led peace operations required predictable funding, adequate equipment, rigorous training and reliable institutional support to enable troops to discharge their responsibilities effectively.

Tinubu also called for stronger maritime cooperation to protect the Gulf of Guinea, describing the waterway as critical to international trade, energy security and the economic prosperity of African countries.

He urged African governments to invest in cyber capabilities, space technologies, artificial intelligence and autonomous systems, stressing that the continent possessed the human talent required to develop competitive defence industries.

“Our young people have the talent; our responsibility is to create the opportunity,” he said.

The president expressed optimism that AFRIDEX 2026 would provide a platform for translating Africa’s technological and industrial potential into practical defence capabilities through partnerships that deliver measurable results.

In a related development, the Northern Senators Forum condemned Friday’s attack on Binari community in Taraba State, demanding immediate security reinforcements, a thorough investigation and the prosecution of those responsible.

In a condolence message signed by its chairman, Abdulaziz Musa Yar’Adua, the forum expressed shock over the killing of worshippers, vigilantes, women and children shortly after Juma’at prayers.

“We received with shock the murder of innocent worshippers, vigilantes, women and children shortly after Juma’at prayers, and we share in your grief at this difficult time,” the senators said.

The forum called on the Nigeria Police Force, Department of State Services (DSS) and Nigeria Security and Civil Defence Corps (NSCDC) to strengthen security operations in Binari and neighbouring communities to prevent further attacks.

It specifically demanded the establishment of a forward operating base and intelligence-led patrols along the Kompany-Asusar route and River Benue corridor to improve surveillance and facilitate rapid responses to security threats.

The senators also urged the National Emergency Management Agency (NEMA) and other organisations to provide urgent humanitarian assistance to displaced residents, injured victims and bereaved families.

They insisted that the perpetrators must be identified, apprehended and prosecuted, while expressing condolences to the Taraba State Government and families of the victims.

The forum called for sustained security operations to restore peace and prevent further loss of lives in the affected communities.

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