Babatunji Wusu –
President Bola Tinubu has defended the administration’s choice to terminate Nigeria’s fuel subsidy program.
The President claimed that gasoline subsidies had to end because they were negatively impacting the economy, creating inefficiencies, and—above all—making it more difficult for Nigeria to make investments in vital energy security-related sectors.
Speaking on Tuesday, Tinubu acknowledged that many Nigerians, particularly those with low incomes, have experienced hardship as a result of the decision to withdraw fuel subsidies. Nevertheless, he gave assurances that these hardships will pass and that the program would ultimately benefit the nation and its people.
Under the direction of Mohammed Idris, Minister of Information and National Orientation, President Tinubu made the statement at the start of the 2024 Nigeria International Energy Summit (NIES) in Abuja.
He claimed that since fuel subsidies are no longer needed, the nation can direct its resources toward other areas of development and promote additional private sector involvement in the energy sector, which will attract more investments.
He said: “The petroleum subsidy has, over the years, strained our economic resources, leading to inefficiencies and, most importantly, hindering our 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 subsidising 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 the potential to attract more local and international investors and foster innovation and competition that will drive down costs and improve the overall efficiency of our energy sector.”
On the impact of his decision on ordinary Nigerians, President Tinubu said the decision was not an easy one but necessary for the growth and development of the country.
He said: “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 programmes to mitigate the short-term effects on vulnerable populations. These programmes will ensure that the burden of subsidy removal is shared equitably and that the most vulnerable among us are protected.
“The decision to remove the petroleum subsidy is not an easy one, but it is a necessary one for the long-term energy security and economic prosperity of our beloved nation. I call upon all stakeholders, including industry experts, policymakers, and the general public, to engage in constructive dialogue and collaboration as we navigate these challenging but transformative times.
“Together, we can build a resilient and sustainable energy future for Nigeria.”
