Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has disagreed with former Vice President Atiku Abubakar over the removal of fuel subsidy, insisting that the policy should not be reversed because of the government’s alleged mismanagement of the savings.
President Bola Ahmed Tinubu announced the removal of petrol subsidy on May 29, 2023, declaring that “subsidy is gone.”
The policy has since triggered significant increases in the prices of petrol, transportation, food and other essential goods and services, generating widespread debate over its economic impact on Nigerians.
While some Nigerians have defended the policy as necessary for economic reform, others have criticised it for worsening the cost-of-living crisis.
Atiku, who is contesting the 2027 presidential election on the platform of the African Democratic Congress (ADC), recently said he would restore fuel subsidy if elected, arguing that its removal had failed to improve the living conditions of Nigerians.
However, Obi, who is also seeking the presidency on the NDC platform, said the solution was not to restore the subsidy but to ensure that the resources saved from its removal were properly managed and used to benefit citizens.
Obi spoke on Monday at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.
The former Anambra State governor said he had always supported the removal of fuel subsidy but maintained that the process should have been properly planned and implemented.
According to him, the failure to manage the proceeds from subsidy removal should not be used as an argument against the policy itself.
Obi said Nigerians should have been provided with tangible alternatives, such as improved infrastructure and social services, using the resources recovered from the subsidy removal.
He expressed concern that the funds generated since the policy was introduced had allegedly not been managed transparently.
The NDC presidential candidate cited claims that the country had received about ₦16 trillion from subsidy removal and questioned how the funds had been utilised.
Obi maintained that the subsidy should have been removed in an organised manner, accompanied by measures designed to cushion the impact on households and businesses.
He said his leadership blueprint for Nigeria already provides for the removal of fuel subsidy, but with a clear framework for ensuring that the resulting savings are properly invested.
According to him, the resources recovered from subsidy removal should be channelled into productive sectors of the economy and programmes that directly improve the welfare of Nigerians.
Obi therefore rejected calls to reverse the policy solely because the proceeds had allegedly been mismanaged, insisting that the focus should instead be on accountability and ensuring that the savings are used for the benefit of the people.
The former governor said effective management of public resources remained critical to making economic reforms deliver meaningful improvements in the lives of Nigerians.
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