President Bola Tinubu stated that his administration’s choice to removed. the Premium Motor Spirit (PMS) subsidy is aimed at securing Nigeria’s long-term energy stability and economic prosperity on Tuesday.
The President noted this while speaking at the opening ceremony of the 7th Nigerian International Energy Summit (NIES) at the Banquet Hall of the Presidential Villa, Abuja.
According to the press release of Mrs. Oluwakemi Ogunmakinwa, Deputy Director in Press and Public Relations, shared on Bayo Onanuga X handle, that President Bola Tinubu, represented by the Minister of Information and National Orientation, Mohammed Idris, at the event, highlighted that the longstanding petroleum subsidy had burdened Nigeria’s economic resources, resulting in inefficiencies and impeding investment in vital energy security sectors.
Tinubu acknowledged the difficulty of removing the subsidy but emphasised its necessity in safeguarding Nigeria’s energy prospects and promoting economic 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.
“This 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,” the president noted.
Highlighting the benefits of subsidy removal, the President emphasised the encouragement of private sector involvement in the energy industry, attracting both local and international investors. This move is expected to stimulate innovation and competition, ultimately reducing costs and enhancing the efficiency of the energy sector.
Addressing the opening ceremony, Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, advocated a transition towards Nigeria’s vast gas sector.
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He stressed that this shift wasn’t just an option but a crucial step for the country’s economic resilience. Ekpo highlighted the gas industry’s potential to diversify revenue streams, lessen reliance on oil, and establish a stronger and more sustainable economic foundation.
