The Minister of Communication and Culture, Lai Mohammed said the Federal Government cannot remove subsidies on the Premium Motor Spirit (PMS), popularly called petrol, now that other nations were introducing measures to help citizens cope with high oil energy prices.
Mohammed, who spoke during an exclusive interview with Reuters in London, said Nigeria cannot be an exception to what other nations are doing.
Nigeria is Africa’s largest oil exporter but still has to import almost all its fuel needs due to a lack of refining capacity. The Federal Government shelved plans to abolish fuel subsidies earlier this year, a move that raised concerns with the International Monetary Fund (IMF).
“When you consider the chaos, the social disharmony and … instability such an action (abolishing subsidies) would facilitate, is it worth it? I don’t think so,” Mohammed said.
The Minister believes that a new industry law that allocates money to oil-producing communities would stop attacks and blamed the European Union’s climate change policies for stifling investment in the sector.
“We believe that climate change is real and important for emission control, but there is a bit of double standard in the EU policy regarding climate change,” he added.