In a decisive move aimed at securing Nigeria’s energy future and fostering economic growth, President Bola Ahmed Tinubu emphasized the necessity of removing the subsidy on Premium Motor Spirit (PMS). His remarks came during the keynote address at the opening ceremony of the 7th Nigerian International Energy Summit (NIES) held at the Banquet Hall of the Presidential Villa, Abuja on Tuesday, February 27, 2024.
Represented by the Minister of Information and National Orientation, Alhaji Mohammed Idris, President Tinubu underscored the detrimental effects of the petroleum subsidy on the country’s economic resources. He noted that over the years, the subsidy had strained Nigeria’s finances, leading to inefficiencies and hampering investments in critical areas of energy security.
Acknowledging the challenging nature of the decision, President Tinubu emphasized its importance in ensuring Nigeria’s long-term energy security and economic prosperity. He stated, “By removing the subsidy, we are creating a more transparent and accountable energy sector. The funds previously allocated to subsidizing petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure.”
Furthermore, President Tinubu highlighted the significance of energy transition, emphasizing the need to embrace cleaner and more sustainable alternatives to traditional energy sources. He stressed the importance of innovation and collaboration in facilitating a smooth and just transition that benefits all stakeholders.
Enumerating the benefits of subsidy removal, President Tinubu pointed out that it encourages private sector participation in the energy industry, attracting both local and international investors. This, in turn, fosters innovation and competition, driving down costs and enhancing the overall efficiency of Nigeria’s energy sector.
Echoing President Tinubu’s sentiments, the Minister of State for Petroleum Resources (Gas), Rt. Hon, Ekperikpe Ekpo, advocated for a shift towards Nigeria’s gas sector. He emphasized that leveraging the country’s vast gas resources is imperative for economic resilience, revenue diversification, and sustainable development. The gas industry presents a unique opportunity to reduce dependence on oil and build a robust economic foundation for Nigeria’s future.
The remarks made by President Tinubu and Minister Ekpo underscored the government’s commitment to implementing strategic policies aimed at ensuring energy security, driving economic growth, and positioning Nigeria as a key player in the global energy landscape. As stakeholders convene at the NIES, discussions centered on these critical issues are expected to shape the trajectory of Nigeria’s energy sector for years to come.
