Politics

Removing Petrol Subsidy is Challenging But a Necessary Step To Take – Tinubu

The Nigerian government announced on Tuesday that the removal of the petroleum subsidy is a difficult yet essential step aimed at enhancing long-term energy security and economic growth within the nation, as reported by Premium Times.

President Bola Tinubu revealed this during the commencement of the 7th Nigeria International Energy Summit (NIES 2024) at the presidential banquet hall in Abuja on Tuesday.

“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 and secure future.”

“The decision to remove the petroleum subsidy is a challenging one, but it is a step we must take to secure our energy future and foster economic growth,” Mr Tinubu said.

As spoken through Mohammed Idris, Nigeria’s Minister of Information and National Orientation on behalf of President Tinubu, ensuring energy security is vital for achieving national economic stability and progress.

“It encompasses not only the availability and accessibility of energy resources but also the resilience of our energy infrastructure,” he said.

He mentioned that the continuous provision of petroleum subsidies has placed a significant burden on the nation’s economic resources, causing inefficiencies and, notably, impeding investments in crucial energy security sectors.

“By removing the subsidy, we are creating a more transparent and accountable energy sector. The funds that were previously allocated to subsidizing petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure,” he said.

Additionally, Mr. Tinubu mentioned that eliminating the subsidy has promoted involvement from the private sector in the energy industry, which could attract a greater number of both local and international investors.

This move is expected to stimulate innovation and competition, leading to cost reductions and enhanced efficiency within the nation’s energy sector.

“I am acutely 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.

“These programmes will ensure that the burden of the subsidy removal is shared equitably and that the most vulnerable among us are protected. The decision to remove the petroleum subsidy is not an easy one, but it is a necessary one for the long-term energy security and economic prosperity of our beloved nation,” he said.