By Stella Odueme
President Bola Ahmed Tinubu has said that the decision to remove subsidy on Premium Motor Spirit (PMS) also known as petrol is 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) held Abuja on Tuesday.
He noted 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 other critical areas of energy security.
Tinubu who was represented by the Minister of Information and National Orientation, Alhaji Mohammed Idris, said that the decision to remove the petroleum subsidy was a challenging one, but stressed that it was a step that must be taken to secure Nigeria’s energy future and foster economic growth.
“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.
“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, ” he assured.
Tinubu however stressed that adequate funding is crucial to support the development and deployment of cutting-edge technologies, infrastructure, and projects that will shape the energy future.
According to him, 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.
“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,” he said.
He therefore called on all stakeholders, including industry experts, policymakers, and the general public to engage in constructive dialogue and collaboration towards achieving the set goal.
“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,” he stressed.
In his opening address, the Minister of State Petroleum Resources (Gas), Rt. Ekperikpe Ekpo, advocated a shift towards the vast potential that lies in Nigeria’s gas sector, saying 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.
Already, he said that gas was attracting domestic and foreign investments that are crucial to unlocking the full potential of the gas resources.
“The gas industry, with abundant proven gas reserves of more than 208 trillion cubic feet (TCF) and further exploration potential, is crucial for enhancing energy security. Nigeria has no business with energy poverty,” he noted.
Ekpo reiterated that Nigeria has chosen gas as the transition fuel, facilitating the shift from more conventional to new and renewable energy sources.
“With its lower carbon footprint and versatility, natural gas aligns with global climate objectives while providing a reliable solution for our energy needs. Nigeria, with significant gas reserves, should leverage this advantage to become a key player in the global energy transition and a regional powerhouse for gas processing and industrialization,”he urged.
The Minister announced that significant progress has been made in the realization of the ‘Decade of Gas’ vision as the official secretariat is now operational and fully functional.
In his part, the Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri, lamented that despite the abundant oil and gas reserves in the country, Nigeria still suffers from energy poverty as the reserves have not translated to economic prosperity contrary to what is obtained in the Middle East.
He therefore implored the stakeholders to unravel what other oil producing countries were doing to bring economic prosperity to their countries that Nigeria hasn’t done.
He advocated that the task of exploring oil reserves should be given to those who have proven capacity, both financially and technically to be able to explore oil and gas reserves for the benefit of Nigerians and the global energy landscape.
“The only way we can guarantee energy security is to increase production in the upstream so that we will be able to provide the right quantity to service our obligations, both locally and internationally,” he added.
In his opening remarks, the Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Agbo Ella said, “The global energy landscape is undergoing a transformative shift, and it is imperative that we collectively address the challenges and opportunities that come with this new order.
In his goodwill message, the Secretary-General of the Organization of Petroleum Exporting Countries (OPEC), H.E. Haitham Al Ghais, said, Nigeria’s role in OPEC’s past and present has been a tremendous source of pride to me organisation.
“Successive generations of Nigerian public servants and captains of industry have contributed to making the OPEC-Nigerian relationship a success, ” he stated.
