Nigeria Moving Beyond Oil Dependency, Tinubu Says
President Bola Ahmed Tinubu says his administration is charting a path toward a resilient, self-sustaining economy less reliant on oil revenue.
Tinubu spoke on Monday in Abuja at the national conference on public accounts and fiscal governance, themed ‘Fiscal Governance in Nigeria: Charting a New Course for Transparency and Sustainable Development’.
Represented by Doris Uzoka-Anite, minister of state for finance, the president said no nation can achieve sustainable growth or meet its citizens’ needs without accountability, transparency, and effective resource management.
Tinubu said that Nigeria’s economy has been burdened by structural inefficiencies, fiscal leakages, and an overreliance on oil revenues for decades.
He said the result has been underinvestment in key sectors, debt vulnerabilities, and limited capacity for social spending.
The president said his administration has taken “bold and necessary decisions” that are already “redefining” Nigeria’s fiscal landscape.
“One such decision was the removal of the petroleum subsidy—a longstanding policy that had, over time, become a significant drain on public finances, riddled with inefficiency, opacity, and abuse,” Tinubu said.
“While this reform came with understandable pains, especially for our most vulnerable citizens, it was a vital step to free up fiscal space for investment in infrastructure, education, healthcare, and social protection.
“Indeed, in 2022 alone, Nigeria spent over N4trillion on fuel subsidies— more than we allocated to capital expenditure.
“This was not only fiscally unsustainable, it was unjust. A subsidy that disproportionately benefits the affluent, encourages smuggling, and breeds inefficiency is neither equitable nor strategic.”
Tinubu said the removal of petrol subsidies saved Nigeria trillions, which are now funding roads, jobs, and social welfare.
“Since its removal, we have redirected those funds into targeted interventions: Expanding social safety nets, improving public transportation, and financing critical infrastructure projects,” he said.
“Most importantly, we have strengthened our fiscal buffers, making Nigeria more resilient to external shocks. Our commitment remains steadfast—to ensure that the gains from this difficult, yet necessary reform, are redirected towards building a Nigeria that works for everyone.”
Also, the president said the tax reform bills he recently signed into law are milestones in his government’s journey toward sustainable fiscal governance.
He said the law will widen the tax base by integrating the informal sector, simplify compliance for small and medium-sized enterprises (SMEs), digitise revenue collection to reduce human interference and eliminate leakages, and harmonise multiple taxes to make doing business easier in Nigeria.
“A modern, transparent, and fair tax system is not just a revenue tool but a governance imperative. Through these reforms, we are building the foundation of a self-sustaining economy where reliance on volatile oil revenues will gradually give way to a more diverse and inclusive revenue base,” Tinubu said.
“Another central policy objective of my administration is our unwavering commitment to strengthening and revitalising the Nigerian economy through a strategic process of diversification.
“We recognise that sustainable economic growth depends on reducing over-reliance on oil revenues and developing a broader range of productive sectors.
“To this end, agriculture, manufacturing, digital services, renewable energy, mining, and the creative economy have been identified as key pillars of this transformation.
“These sectors are receiving targeted investments, policy reforms, and infrastructural support aimed at boosting productivity, creating jobs, and fostering inclusive economic development across the country.
“We have launched a new wave of strategic initiatives, including the establishment of the National Credit Guarantee Company, aimed at encouraging local production, supporting small and medium-sized enterprises (SMEs), and deepening Nigeria’s non-oil export base.
“These efforts go beyond mere economic metrics; they are fundamentally about creating jobs, fostering innovation, building economic resilience, and, most importantly, strengthening our national security and long-term stability.”
Furthermore, Tinubu said his administration is working more closely than ever with the Central Bank of Nigeria (CBN) to ensure better coordination between fiscal and monetary policy.
The president said the alignment is crucial to taming inflation, stabilising the naira, and restoring investor confidence.
He added that his administration is determined to reduce inflationary pressures by addressing structural bottlenecks, particularly in food supply chains, while exercising discipline in public spending.
Tinubu noted that transparency and accountability are not optional but a prerequisite for fiscal sustainability.
“We have strengthened the role of the auditor-general’s office, enhanced the framework for procurement transparency, and expanded the use of digital financial management systems across ministries, departments, and agencies,” Tinubu said.
He also urged the national assembly, especially the public accounts committees, to discharge their constitutional responsibilities with integrity, courage, and independence.
“Oversight is not a political tool; it is a patriotic duty,” he said.
Tinubu added that Nigeria’s ambition for sustainable development demands strategic investments in education, healthcare, infrastructure, and job creation.
