President Bola Ahmed Tinubu on Friday said the removal of fuel subsidy by his administration prevented Nigeria from imminent bankruptcy and has laid the foundation for the country’s ongoing economic recovery.

He made the remarks while hosting state governors at the Presidential Villa in Abuja for Sallah celebrations and the third anniversary of his administration.

Governors present included those of Lagos, Nasarawa, Jigawa, Sokoto, Kebbi, Taraba, Niger, Ekiti, Delta, Ondo, Edo, Adamawa, Benue, Enugu, Ogun and Kogi States, alongside the deputy governors of Borno and Kano.

Tinubu said the subsidy regime had become fiscally unsustainable, stressing that its removal was necessary despite the hardship it triggered.

“It was challenging at the time, but we survived… Instead of bankruptcy, Nigeria has survived. The economy is growing,” the President said.

He noted that the savings from subsidy removal were being redirected into agriculture, infrastructure and other critical sectors, adding that ongoing reforms were restoring investor confidence and stabilising key macroeconomic indicators.

Tinubu also commended state governors for supporting the reforms and helping to sustain public confidence during the difficult transition period.

“The economy has recovered. Macroeconomic indices are doing very well… Agriculture will prosper again,” he said.

Vice President Kashim Shettima praised the President’s decision to end the subsidy, describing it as a bold and necessary reform that confronted decades of structural economic distortions.

Kwara State Governor and Nigeria Governors’ Forum Chairman, AbdulRahman AbdulRazaq, said the policy had significantly increased allocations to states, enabling them to clear salary and pension arrears and fund development projects.

He also backed calls for improved workers’ welfare, urging consideration of a ₦100,000 minimum wage.

Imo State Governor and Chairman of the Progressive Governors Forum, Hope Uzodinma, said the reforms had stabilised the economy and restored confidence in governance, praising the President’s leadership and policy direction.

Lagos State Governor Babajide Sanwo-Olu earlier welcomed his counterparts to Lagos for the Sallah gathering, describing it as an opportunity to strengthen collaboration between federal and state governments.