President Bola Ahmed Tinubu on Tuesday explained that the decision taken to remove subsidy on petrol was a challenging one but it was necessary to ensure a transparent and accountable energy sector.
The President, who was represented by the Minister of Information and National Orientation, Mohammed Idris, at the 2024 Nigeria International Energy Summit (NIES) in Abuja, acknowledged that the decision has led to hardship, especially among low-income earners, but assured that eventually the economy will improve and the benefits will manifest as energy security was a priority for his administration.
He added that the funds that were previously allocated to subsidising petroleum products are now redirected towards developing and upgrading energy and other social infrastructure.
He stated that the removal of the subsidy has encouraged further private sector participation in the energy industry, with the potential to attract more local and international investors and foster innovation and competition that will drive down costs and improve the overall efficiency of the energy sector.
He said: 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.
“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, the removal of the subsidy has encouraged further private sector participation in the energy industry, with the potential to attract more local and international investors and foster innovation and competition that will drive down costs and improve the overall efficiency of our energy sector.”
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