President Bola Tinubu has given reasons that compelled him to remove fuel subsidy, describing it as a painful but unavoidable decision in order to sanitize the energy sector.
Speaking at the opening of the 2024 Nigeria International Energy Summit, NIES, in Abuja, Tinubu, who was represented by the Minister of Information and National Orientation, Mohammed Idris, said the subsidy on petrol had been a clog in the wheel of the country’s advancement.
“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,” he reiterated.
“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.
“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.”
