President Bola Tinubu has expressed the commitment of his administration to implementing intervention programmes to mitigate the short-term effects of the fuel subsidy removal on the most vulnerable Nigerians.
President Bola Tinubu made the commitment while speaking at the Official Opening of the 7th Edition of the Nigeria International Energy Summit (NEIS 2024) at the Banquet Hall of the Presidential Villa, Abuja.
“I am acutely aware of the immediate impact this decision may have had on our citizens, especially those with lower incomes. Therefore, in parallel with the subsidy removal, my administration is committed to implementing social intervention programs to mitigate the short-term effects on vulnerable populations”, he said.
He explained that the petroleum subsidy has, over the years, strained the nation’s economic resources, leading to inefficiencies and, most importantly, hindering its ability to invest in critical areas of energy security.
“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 potential of attracting more local and international investors, fostering innovation and competition that will drive down costs and improve the overall efficiency of our energy sector”, the President explained.
Represented by the Minister of Information and National Orientation, Mohammed Idris, Tinubu said, the theme of this year’s summit, “Navigating the New Energy World Order: Security, Transition, and Finance,” was not only timely but also critical as the country finds itself at the crossroads of a rapidly transforming global energy landscape.
He noted that energy security was not just a national concern, but a global imperative, therefore, in the face of emerging challenges, both geopolitical and technological, the country must ensure the resilience of its energy infrastructure.
While speaking on energy transition, Tinubu said, “transition is not only an environmental necessity but also an economic opportunity. We must leverage innovation and collaboration to ensure a smooth and just transition that will leave no one behind”.
According to him, adequate funding was crucial to support the development and deployment of cutting-edge technologies, infrastructure, and projects that will shape the nation’s energy future.
He added, “as a nation, we must explore innovative financing models, engage with the private sector, and attract investments that will propel us towards a more resilient and diversified energy sector.
The President urged the participants, especially, the experts in the industry to engage in meaningful discussions, and contribute their expertise towards finding solutions to the complex energy challenges facing the country.
