As Nigerians continue to wallow in hard­ship brought about by the removal of fuel subsidy, President Bola Ahmed Tinubu on Tuesday gave further explanations why he took the painful decision on May 29, 2023.

President Tinubu, who spoke at the opening of 7th edition of the Nigeria In­ternational Energy Summit (NIES 2024), stated that the decision to remove the fuel subsidy is a challenging one, but it is a step we must take to secure our energy future and foster economic growth.

He described as not only timely but also critical the theme of this year’s sum­mit, ‘Navigating the New Energy World Order: Security, Transition, and Finance,’ as Nigeria finds itself at the crossroads of a rapidly transforming global energy landscape.

Represented by Mohammed Idris, Minister of Information and National Orientation, President Tinubu noted that he is acutely aware of the immediate impact the decision may have had on cit­izens, especially those with lower incomes, but added that the petro­leum subsidy has, over the years, strained Nigeria’s economic re­sources, leading to inefficiencies and, most importantly, hindering its ability to invest in critical areas of energy security.

“The theme of this year’s summit, ‘Navigating the New Energy World Order: Security, Transition, and Finance,’ is not only timely but also critical as we find ourselves at the crossroads of a rapidly transforming global energy landscape.

“Energy security, as we know, is of paramount importance. It is not just a national concern, it is a global imperative. In the face of emerging challenges, both geopo­litical and technological, we must ensure the resilience of our ener­gy infrastructure. The decisions we make today will impact the energy security of generations to come.

“This platform affords me a great opportunity to once again address a crucial issue that has been at the forefront of our na­tional discourse – the removal of the petroleum subsidy.

“Our great nation has long been dependent on the revenue generated from oil exports, and as we stand at the crossroads of the 21st century, it is imperative that we re-evaluate our energy policies to ensure a sustainable and secure future. The decision to remove the petroleum subsidy is a challeng­ing one, but it is a step we must take to secure our energy future and foster economic growth.

“Energy security is a para­mount concern for any nation striving for economic stability and development. It encompasses not only the availability and accessi­bility of energy resources but also the resilience of our energy infra­structure. 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 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.

“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 the 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.

“While we are immersed on 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.

“Finance, as always, plays a pivotal role in driving the energy agenda. Adequate funding is cru­cial to support the development and deployment of cutting-edge technologies, infrastructure, and projects that will shape our ener­gy future. 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 collective wisdom in this room is a powerful force, going by the collection of government, in­dustry leaders, academia, and civ­il society coming together under the NIES 2024 platform to share insights, and forge collaborations that will drive progress. I have no doubt that the discussions over the next few days will be instru­mental in shaping policies and strategies that will define our en­ergy future.

“I challenge each one of you to actively participate, engage in meaningful discussions, and contribute your expertise towards finding solutions to the complex energy challenges we face. To­gether, we can navigate the new energy world order with resil­ience, innovation, and a shared commitment to a sustainable and secure energy future for Nigeria”.