“We need to remove subsidy” — Peter Obi disagrees with Atiku’s proposal to restore fuel subsidy

Peter Obi, the presidential candidate of the Nigeria Democratic Congress NDC, has rejected Atiku Abubakar’s proposal to restore Nigeria’s petrol subsidy if elected president in 2027.

The former Anambra State governor said subsidy removal was necessary, but criticised the Federal Government for failing to properly utilise the resources generated from the policy.

Obi spoke on Monday during the Nigerian Bar Association conference in Port Harcourt, Rivers State, where he addressed the ongoing debate over the future of fuel subsidy.

His position puts him at odds with Atiku, the presidential candidate of the African Democratic Congress, who has promised to reverse the subsidy removal if he wins the 2027 election.

Obi defends subsidy removal

Atiku had supported subsidy removal during the 2023 presidential election but has since changed his position.

He now argues that restoring the subsidy would help reduce the burden of high petrol prices on Nigerians.

Obi, however, maintained that the removal itself was not the problem.

“I subscribe and I maintain that we need to remove subsidy. Mismanagement of the proceeds should not be the reason for not removing it,” he said.

According to Obi, the government should have planned adequately before implementing the policy.

He said Nigerians should have been provided with alternatives to ease the economic hardship caused by higher fuel prices.

“What we should have done is that when we removed it, we should have given the people alternative usage for the subsidy,” Obi said.

‘Resources are being mismanaged’

Obi accused the government of failing to properly account for the financial resources recovered following the subsidy removal.

He alleged that the funds were being “mismanaged and stolen” instead of being invested in areas that would benefit Nigerians.

“What we have today is that that removal and the attendant resources being recovered is also being mismanaged and stolen,” he said.

The former governor also pointed to his 2023 presidential campaign manifesto, saying he had proposed a structured approach to subsidy removal.

“Go to my manifesto, I said it before, I said I will do it in an organised manner and whatever we recover would be invested appropriately,” Obi said.

Tinubu’s subsidy decision

President Bola Tinubu removed the petrol subsidy shortly after taking office on May 29, 2023.

The announcement triggered an immediate increase in petrol prices and contributed to growing pressure on households and businesses.

The Federal Government has maintained that the policy was necessary to ease the financial burden on the government and redirect public funds towards development.

However, concerns over rising living costs and the management of funds saved from subsidy removal have continued to fuel debate over the policy.