Tinubu explains the rationale behind the removal of petrol subsidy
On Tuesday, President Bola Tinubu elucidated that the choice to eliminate the petrol subsidy was a difficult yet essential decision aimed at fostering transparency and accountability in the energy sector.
Speaking at the commencement of the 2024 Nigeria International Energy Summit (NIES) in Abuja, the President recognized the challenges resulting from the decision, particularly affecting low-income earners. However, he assured that as the economy progresses, the benefits will become evident.
Delivered by the Minister of Information and National Orientation, Mohammed Idris, on behalf of Tinubu, he emphasized that energy security stands as a top priority for the administration.
He stated, "The petroleum subsidy has strained our economic resources for years, causing inefficiencies and, notably, impeding our capacity to invest in critical aspects of energy security.
"Through the elimination of the subsidy, we are establishing a more transparent and accountable energy sector. The funds previously allocated to subsidizing petroleum products are now channeled towards the development and enhancement of our energy and other essential social infrastructure.
"Moreover, the subsidy removal has spurred increased private sector involvement in the energy industry. This has the potential to attract additional local and international investors, fostering innovation and competition that will reduce costs and enhance the overall efficiency of our energy sector."
Recognizing the challenges posed by this decision, the President expressed, "I am fully aware of the immediate impact this choice may have on our citizens, particularly those with lower incomes.
In tandem with the subsidy removal, my administration is steadfast in implementing social intervention programs to alleviate the short-term effects on vulnerable populations. These initiatives will ensure a fair distribution of the subsidy removal burden, prioritizing the protection of the most vulnerable among us.
The decision to eliminate the petroleum subsidy is a difficult one but necessary for the long-term energy security and economic prosperity of our beloved nation. I urge all stakeholders, including industry experts, policymakers, and the general public, to engage in constructive dialogue and collaboration as we navigate through these challenging yet transformative times."
Collaboratively, we can construct a robust and enduring energy future for Nigeria.
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