daniel chigunwe
Bloomberg
Nigeria’s new president pledged to invest in infrastructure projects in a bid to placate residents after scrapping expensive fuel subsidies.
Gasoline prices almost tripled after President Bola Tinubu removed price caps that cost the government US$10 billion last year. Tinubu said his administration will boost spending on roads, education and healthcare to help improve the standard of living in Africa’s most populous nation.
He asked Nigerians to “sacrifice a little more for the survival of our country” in a speech to mark Democracy Day in Nigeria on Monday.
“The government I lead will repay you through massive investment in transportation infrastructure, education, regular power supply, healthcare and other public utilities” after the removal of the “fuel-subsidy albatross,” Tinubu said.
“For your trust and belief in us, I assure you that your sacrifice shall not be in vain.”
Africa’s biggest economy has been dragged down by subsidies and a rising debt burden, which has risen to a record 77 trillion naira ($163 billion).
Meanwhile, the central bank’s policy of maintaining multiple foreign-exchange rates and the difficulty that companies face in repatriating earnings deters foreign investment.
Bongani Ndlovu