‘I Am Aware Nigerians Are Suffering’ – Tinubu Reveals, Discloses Reason For Removing Fuel Subsidy

President Bola Tinubu has defended the decision of his administration to end the fuel subsidy regime in Nigeria.

According to the President, fuel subsidy had to go because it was causing a strain on the economy, leading to inefficiencies and, most importantly, hindering Nigeria’s ability to invest in critical areas of energy security.

Speaking on Tuesday, Tinubu said he is aware the decision to remove fuel subsidy has led to hardship for many Nigerians, especially amongst low-income earners, but however, assured that the hardship is temporary and the country and its citizens would reap the benefits of the policy.

President Tinubu made the submission at the opening of the 2024 Nigeria International Energy Summit (NIES) in Abuja, where he was represented by the Minister of Information and National Orientation, Mohammed Idris.

He said with the removal of fuel subsidy, the country can now channel resources to other developmental areas, and encourage further private sector participation in the energy industry, leading to 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.”