In a significant address at the 7th Nigerian International Energy Summit (NIES), President Bola Ahmed Tinubu articulated the rationale behind his administration’s decision to eliminate the subsidy on Premium Motor Spirit (PMS), stressing its necessity for ensuring Nigeria’s long-term energy security and economic prosperity.
According to Deputy Director (Press and Public Relations) Ministry of Information and National Orientation Oluwakemi Ogunmakinwa Mrs, the Minister of Information and National Orientation, Alhaji Mohammed Idris stated this while delivering the keynote speech at the opening ceremony held at the Banquet Hall of the Presidential Villa in Abuja on Tuesday, February 27th, 2024.
The Minister who represented President Tinubu, underscored how the petroleum subsidy had strained the nation’s economic resources over the years. He highlighted its role in fostering inefficiencies and, critically, impeding investments in vital areas of energy security.
Acknowledging the challenging nature of the decision to remove the subsidy, President Tinubu emphasized its indispensability in securing Nigeria’s energy future and fostering economic growth. He outlined the redirection of funds, previously allocated to subsidizing petroleum products, towards the development and enhancement of energy infrastructure, alongside other essential social amenities.
Furthermore, President Tinubu addressed the imperative of Energy Transition, recognizing it as a crucial aspect of contemporary discourse. He emphasized the environmental necessity and economic opportunity inherent in transitioning towards cleaner and more sustainable energy alternatives. Leveraging innovation and collaboration, he stressed, would ensure a seamless and equitable transition benefiting all stakeholders.
Highlighting the positive outcomes of subsidy removal, the President noted the encouragement of private sector participation in the energy industry. He emphasized its potential for attracting both local and international investors, stimulating innovation, and fostering healthy competition, ultimately driving down costs and enhancing overall energy sector efficiency.
Rt. Hon. Ekperikpe Ekpo, the Minister of State Petroleum Resources (Gas), echoed President Tinubu’s sentiments, advocating for a strategic shift towards Nigeria’s gas sector. He underscored the imperative of this transition for the country’s economic resilience, emphasizing the vast potential of the gas industry in diversifying revenue streams, reducing oil dependence, and establishing a more robust and sustainable economic foundation.
The remarks made by President Tinubu and other key stakeholders at the NIES underscore the administration’s commitment to navigating Nigeria towards a more secure, sustainable, and prosperous energy future, marked by prudent policy decisions and strategic investments in critical sectors.
