President Bola Tinubu, speaking at the inauguration of the 2024 Nigeria International Energy Summit (NIES) in Abuja on Tuesday, provided insights into the challenging decision to remove subsidy on petrol.
Acknowledging the resulting hardships, particularly among low-income earners, Tinubu emphasized the necessity of the move for fostering transparency and accountability in the energy sector.
Represented by the Minister of Information and National Orientation, Mohammed Idris, President Tinubu underscored the administration’s commitment to prioritizing energy security.
He articulated, “The petroleum subsidy has, over the years, strained our economic resources, leading to inefficiencies and, most importantly, hindering our ability to invest in critical areas of energy security.”
Explaining the rationale behind subsidy removal, Tinubu outlined the redirection of funds previously allocated to subsidizing petroleum products towards developing and upgrading energy and social infrastructure.
“By removing the subsidy, we are creating a more transparent and accountable energy sector,” he affirmed.
Furthermore, he highlighted how this action has stimulated increased private sector participation, fostering innovation, competition, and cost reduction in the energy industry.
Acknowledging the immediate impact on citizens, especially those with lower incomes, Tinubu assured that parallel to subsidy removal, the administration is committed to implementing social intervention programs to alleviate short-term effects on vulnerable populations.
“These programs will ensure that the burden of subsidy removal is shared equitably and that the most vulnerable among us are protected,” he assured.
Recognizing the complexity of the decision, Tinubu reiterated its necessity for the nation’s long-term energy security and economic prosperity.
He urged all stakeholders, including industry experts, policymakers, and the general public, to engage in constructive dialogue and collaboration to navigate these challenging yet transformative times.
In conclusion, Tinubu’s elucidation on the subsidy removal underscores a strategic vision aimed at fostering transparency, accountability, and sustainability in Nigeria’s energy sector.
While the path ahead may present challenges, the commitment to equitable social intervention and collaborative engagement signals a determined resolve to steer the nation towards enduring prosperity and resilience.
