Atiku’s Subsidy Proposal Could Reverse Economic Gains, APC Chairman Warns
The National Chairman of the All Progressives Congress (APC), Prof. Nentawe Yilwatda, has warned that former Vice-President Atiku Abubakar’s proposal to reintroduce fuel subsidy could undermine the economic reforms of the President Bola Ahmed Tinubu administration and reverse some of the gains recorded so far.
Yilwatda argued that returning to a broad fuel-subsidy regime could place renewed pressure on public finances, reduce resources available to governments and undermine funding for critical sectors of the economy.
The APC chairman made the position known in Abuja while receiving a delegation of economic stakeholders who visited him to discuss Nigeria’s economic situation, ongoing reforms and the prospects for sustainable growth.
Atiku, the presidential candidate of the African Democratic Congress (ADC) for the 2027 election, has advocated a targeted subsidy framework as part of his proposed alternative approach to addressing the hardship associated with the removal of petrol subsidy.
However, Yilwatda questioned the sustainability of such a policy, arguing that the debate should not focus solely on the prospect of cheaper petrol but also on the cost to government and the opportunity cost of diverting public resources to subsidise consumption.
According to the APC chairman, any politician proposing a return to subsidy should clearly explain how the policy would be financed, its projected cost and the length of time it could be sustained.
He maintained that the removal of subsidy, although painful for Nigerians, had contributed to increased government revenues and improved the capacity of federal and state governments to meet financial obligations.
Yilwatda specifically pointed to the ability of states to meet salary and pension commitments and fund development programmes following the increase in allocations from the federation.
He warned that reversing the policy could recreate some of the fiscal challenges associated with the previous subsidy regime, potentially constraining government spending on infrastructure, education, healthcare and other essential services.
The APC chairman also highlighted interventions in the education sector, including the Nigeria Education Loan Fund (NELFUND), as examples of programmes that could be affected if government revenues were significantly reduced.
He acknowledged the economic difficulties Nigerians have experienced following the removal of subsidy but argued that the appropriate response should be to strengthen measures designed to cushion the impact on vulnerable households while pursuing reforms that improve productivity, investment and economic growth.
Yilwatda urged Nigerians to scrutinise competing economic proposals ahead of the 2027 elections and assess not only their immediate benefits but also their long-term implications for national finances.
He said political parties and presidential candidates should provide Nigerians with clear answers on the cost, funding mechanism, duration and broader economic consequences of their proposed policies.
The APC leadership maintained that the Tinubu administration’s reforms are aimed at restructuring the economy, improving fiscal sustainability and creating the foundation for stronger long-term growth.
The subsidy question is expected to remain a major issue in the political debate ahead of the 2027 presidential election, with the ruling APC defending the government’s reform programme and opposition forces presenting alternative approaches to addressing inflation, living costs and declining purchasing power.