President Bola Ahmed Tinubu has stated that the removal of fuel subsidy is beneficial to the energy sector, News About Nigeria reports.
The President said this while speaking at the opening of the 2024 Nigeria International Energy Summit (NIES) in Abuja.
He also noted that although the decision has led to hardship, especially among low-income earners, eventually the economy will improve and the benefits will manifest.
He noted that it was a necessary move that would ensure a transparent and accountable energy sector.
President Bola Tinubu, who was represented by the Minister of Information and National Orientation, Mohammed Idris, maintained that energy security was a priority for his administration.
“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,” he said.
He further noted that he was aware of the immediate impact this decision may have had on our citizens, especially those with lower incomes, adding that his administration is committed to implementing social intervention programmes to mitigate the short-term effects on vulnerable populations.
