February 27, (THEWILL) – President Bola Tinubu has said the decision to remove petroleum subsidy was a challenging one but a necessary step to secure long-term energy security and foster economic growth of the country.
Tinubu spoke on Tuesday, when he officially declared open the 7th edition of the Nigeria International Energy Summit (NIES 2024) at the State Banquet Hall, Aso Villa, Abuja.
The President, represented by the Minister of Information and National Orientation, Mohammed Malagi, said the petroleum subsidy had over the years strained Nigeria’s economic resources.
“By removing the subsidy, we are creating a more transparent and accountable energy sector. The funds that were previously allocated to subsidising petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure.
“Furthermore, subsidy removal has encouraged further private sector participation in the energy industry with the potential of attracting more local and international investors, innovation and competition in the sector.
“I am very aware of the immediate impact this decision may have had on our citizens, especially those with lower incomes.
“Therefore, in parallel with the subsidy removal, my administration is committed to implementing social intervention programmes to mitigate the short-term effects on vulnerable populations.
“Our great nation has long been dependent on the revenue generated from oil exports, and as we stand at the crossroads of the 21st century, it is imperative that we re-evaluate our energy policies to ensure a sustainable future,” he said.
The President thanked the organisers of the summit for the opportunity to once again address the subsidy removal, which he said was a crucial issue that had been at the forefront of Nigeria’s national discourse.
He, however, urged all stakeholders, including industry experts, policymakers and the general public to engage in constructive dialogue and collaboration while navigating these challenging but transformative times.
The summit, holding from February 26 to March 1, has in attendance more than 6,000 foreign and local oil and gas industry players, regulators and investors.
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