Tinubu took bullets on subsidy to save Nigeria from economic collapse — Dele Alake

Cyril Mbah, Abuja

The Minister of Solid Minerals Development, Dr. Dele Alake, on Wednesday told members of the All Progressives Congress Press Corps, (APCPC), that President Bola Tinubu boldly took difficult decisions on subsidy removal to prevent Nigeria from sliding into economic ruin.

Addressing the correspondents in Abuja, Alake said previous governments knew the distortions in the economy but lacked the courage to act due to fear of elections and political backlash.

“When you are in a hole, what do you do? You stop digging. Because the more you dig, the deeper you sink,” the Minister said, adding, “But because those previous governments lacked that courage, for short-term political expedience, they shifted the hard decisions they ought to have taken.”

He recalled how past administrations backtracked on subsidy removal whenever protests erupted ahead of elections, stating that “somebody came and decided to swallow the bitter pill, to take the bullets on behalf of Nigerians.”

The Minister argued that fuel subsidy did not benefit the average Nigerian but rather enriched cartels and the upper class. “One family would have five vehicles or ten cars. And you are subsidising fuel for those ten cars whereas the average Nigerian had one,” he explained.

Alake said the removal of subsidy was already inevitable because the 2023 budget did not make provision for it beyond June 30 and he added that failure to act would have led to hyperinflation similar to pre-Hitler Germany era where people carried money in wheel-barrows to buy bread.

He described governance as requiring “vision, knowledge and courage” to conceptualise policies that last 50 years. 

According to him, human beings are the most difficult factor of production because “we are creatures of emotion, not creatures of logic.”

Drawing from his experience in Lagos, Alake said the same principles Tinubu applied in Nigeria were used to transform Lagos’ economy. 

He cited the introduction of biometric payroll in 1999 which saved N350 million in the first month and helped grow IGR from N600 million monthly to make Lagos the 5th largest economy in Africa.

The Minister said the Tinubu administration has stabilised the macroeconomy, a fact acknowledged by local and foreign rating agencies. 

He added that micro-level benefits are also emerging, citing NELFund student loans and allowances as direct relief for families paying tertiary school fees.

Alake urged the media to be responsible and conduct background checks before amplifying criticisms. 

He accused some media platforms of “unwittingly” helping subsidy cartels push back against reforms for selfish reasons.

Alake also dismissed controversies around the APC Campaign Council list, describing it as “an internal mechanism of the party” that has no bearing on government policies or public welfare.

Concluding, the Minister said Nigeria does not need a reset because the reforms are already in place and yielding results. 

“What Nigeria needs is consistency. The reforms have come. They are in place. And they are moving ahead,” he said.

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