By Femi Alabi.
President Bola Tinubu has admitted that the decision to remove petroleum subsidy was a challenging one, but a step that must be taken to secure Nigeria’s energy future and foster economic growth.
Tinubu added that the decision was premised on the need to ensure long-term energy security and economic prosperity of Nigeria.
The President stated this in his keynote address at the opening ceremony of the 7th Nigerian International Energy Summit (NIES) at the Banquet Hall of the Presidential Villa, Abuja on Tuesday.
The President who was represented at the event by the Minister of Information and National Orientation, Mohammed Idris, held that the petroleum subsidy had, over the years strained the country’s economic resources, leading to inefficiencies and, most importantly, hindering ability to invest in critical areas of energy security.
He said, “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”.
“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”.
Highlighting some of the gains of the removal of the subsidy, the President said the private sector have been encouraged to participate 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.
In his address at the opening ceremony, the Minister of State Petroleum Resources (Gas), Rt. Hon, Ekperikpe Ekpo, called for a shift towards the vast potential that lies in Nigeria’s gas sector.
He stated that the shift towards gas was not merely an option but a necessity for the country’s economic resilience, adding that the gas industry presents a unique opportunity to diversify revenue streams, reduce dependence on oil, and create a more robust and sustainable economic foundation.
Ekpo noted that the theme of NIES 2024, “Navigating the new energy world order: Security, Transition, and Finance,” underscored the challenges and opportunities that define our times.
“The theme resonates deeply with the path that the gas industry must tread to ensure Nigeria’s economic transformation”.
He added that the theme of the summit synergized with Nigeria’s gas industry’s transformative potential.