Nigeria’s number one man, President Bola Ahmed Tinubu has explained that the recent fuel price hike was necessary to free up resources for infrastructural investments such as roads.

Tinubu, represented by Vice President Kasim Shettima, disclosed in his remark on Tuesday at the ongoing 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers in Abuja.

In a statement by Shettima’s spokesperson, Stanley Nkwocha, Tinubu noted that the economic reforms of this administration such as fuel subsidy removal were designed to free up budgetary resources.

He added that the country’s frequent adjustment of interest rate which stood at 26.75 percent was aimed at inflation and fostering a more market-oriented exchange rate system.

“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services, frequent adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system,” he said.

President Tinubu urged for collaboration across all sectors, including the government, private industry, and civil society organizations, saying, “To achieve sustained economic growth, we must intentionally align our policies and actions with the changing global landscape.

“The government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development,” he added.

The development comes as Nigerians groan over the recent petrol pump price hike to N897 per liter at Nigerian National Petroleum Company Limited retail outlets and N980 in other filling stations from N617 and N720.

Earlier in June last year, the government had announced fuel subsidy removal which saw petrol price increased to over N500 per litre from N238.

This saw the country’s inflation rise to 33.40 percent in July 2024 from 24.08 percent in the corresponding period last year.