President Bola Tinubu says the removal of petrol subsidy was a challenging but necessary decision to secure the country’s energy future.
Tinubu said this on Tuesday at the 7th Nigeria International Energy Summit (NIES) which took place at the banquet hall of the presidential villa, Abuja.
The president was represented at the event by Mohammed Idris, the minister of information.
In his keynote address, Idris said the payment of petrol subsidy strained the country’s resources over the years, and hindered investments in critical infrastructure.
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The information minister said the funds meant for petrol subsidy are now being used to erect social and energy infrastructure.
He added that the country must not lose sight of the need for energy transition while discussing energy security.
“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,” the minister quoted the president as saying.
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“Energy security is a paramount concern for any nation striving for economic stability and development.
“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.
“While we are immersed in energy security, let us not forget that energy transition is another key aspect of our discussions.
“We stand on the brink of a new era, where traditional energy sources are being complemented and, in some cases, replaced by cleaner and more sustainable alternatives.
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“This transition is not only an environmental necessity but also an economic opportunity.”
On May 29, 2023, Tinubu announced the removal of subsidy on petrol — a development that immediately led to a spike in the price of the product and spiralling inflation across board.
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