Removal of fuel subsidy challenging but necessary for economic growth – Tinubu

President Bola Tinubu said on Tuesday the decision to remove petroleum subsidy was a challenging one, but a necessary step for the country’s economic growth.

The president stated this when he officially opened the 7th edition of the Nigeria International Energy Summit (NIES 2024) at the State Banquet Hall, Abuja.

Tinubu, who was represented at the event by the Minister of Information and National Orientation, Alhaji Mohammed Idris, said his administration was committed to implementing social intervention programmes to mitigate the short-term effects of fuel subsidy removal on Nigerians.

He added that the fuel subsidy had strained Nigeria’s economic resources over the years.

President Tinubu said: “By removing the subsidy, we are creating a more transparent and accountable energy sector.

READ ALSO: Tinubu had no plans what to do after subsidy removal, Obaseki laments

“The funds that were previously allocated to subsidising petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure.

“Furthermore, subsidy removal has encouraged further private sector participation in the energy industry, potentially attracting more local and international investors, innovation and competition in the sector.

“I am very 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.”

He stressed that the social intervention programmes would ensure that the burden of the subsidy removal was shared equitably and that the most vulnerable Nigerians were protected.

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