The federal government announced on Friday, March 8, that it is continuing with its plan to remove fuel subsidy.
They also mentioned that they are working hard to keep fuel prices stable for the benefit of Nigeria.
The International Monetary Fund had criticized the government for still subsidizing fuel prices despite President Bola Tinubu’s announcement about removing the subsidy.
Olu Verheijen, the special adviser to the president on energy, spoke at a press briefing in Abuja and explained that it’s the government’s right to maintain price stability, similar to what other developed countries like the United States do to prevent economic instability.
Verheijen emphasized that although the subsidy was officially removed in May 2023, the government can still intervene to stabilize prices when necessary, without bringing back the subsidy.
Regarding Nigeria’s gas potential, Verheijen mentioned that the recent fiscal incentives signed by the President aim to tap into the country’s vast gas reserves, which are currently underutilized.
These incentives are meant to attract investments in gas infrastructure and encourage gas production for various uses.
She highlighted the importance of creating a favorable business environment to attract investors to the gas sector.
Additionally, she mentioned the need to address security concerns, especially in the Niger Delta, to ensure the uninterrupted operation of gas pipelines.
Verheijen also touched on the pricing of cooking gas, stating that a significant portion of Nigeria’s gas is imported, making the country a price taker rather than a price setter.
However, the government is implementing measures to encourage investment in the domestic production of cooking gas to reduce costs and ensure availability.
The presidential aide further discussed the recent executive orders signed by the President, which aim to accelerate economic growth and diversify the economy.
These orders include streamlining regulatory processes, providing fiscal incentives for gas development, and promoting local content practices in the oil and gas sector.
Verheijen emphasized the government’s commitment to driving economic growth through private sector-led initiatives and clear, inclusive policies.
She stressed the importance of collaboration with investors to unlock the full potential of Nigeria’s oil and gas sector and create opportunities for job creation and poverty reduction.
