President Bola Ahmed Tinubu made a candid disclosure on Tuesday, February 27, regarding his challenging decision to remove the subsidy on petrol, underscoring the imperative of fostering transparency and accountability within the energy sector.
Addressing attendees at the opening ceremony of the 2024 Nigeria International Energy Summit (NIES), Tinubu acknowledged the hardships inflicted by this move, particularly on low-income earners. However, he emphasized the necessity of this measure to lay the groundwork for a more resilient and prosperous economy in the long run, as reported by Vanguard newspaper.
Represented by Mohammed Idris, the Minister of Information and National Orientation, Tinubu reiterated his administration’s unwavering commitment to prioritizing energy security. He elucidated, “By eliminating the subsidy, we are ushering in a new era of transparency and accountability in the energy sector. The resources previously channeled into subsidizing petroleum products are now being redirected towards the development and enhancement of our energy infrastructure and other vital social amenities.”
Moreover, Tinubu highlighted the catalytic effect of subsidy removal in stimulating increased private sector involvement in the energy industry. This, he noted, holds the potential to attract both local and international investors, fostering innovation, competition, and ultimately driving down costs while enhancing overall efficiency.
Acknowledging the magnitude of this decision, Tinubu urged all stakeholders, including industry experts, policymakers, and the general public, to engage in constructive dialogue and collaborative efforts as the nation navigates through these transformative but challenging times. He reiterated his conviction that despite the immediate hardships, the removal of the petroleum subsidy stands as a crucial step towards ensuring long-term energy security and economic prosperity for Nigeria.