Obi Backs Fuel Subsidy Removal, Faults Mismanagement of Savings
By The Analyst Online Media
Former Anambra State Governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reaffirmed his support for the removal of petrol subsidy, arguing that alleged mismanagement of the savings from the policy should not be used as justification for its reversal.
Obi stated this on Monday at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State, where he addressed ongoing economic challenges and the policy choices confronting Nigeria.
His position comes amid renewed debate over the future of petrol subsidy, following calls by former Vice-President Atiku Abubakar for a review of the current approach and the possible restoration of a form of subsidy to reduce the burden of high fuel prices on Nigerians.
Obi, however, maintained that the fundamental issue was not the removal of the subsidy itself, but how government managed the resources generated from the policy and how it addressed the consequences for citizens.
According to him, Nigeria needed to have accompanied subsidy removal with carefully designed measures that would provide alternative benefits to citizens and cushion the impact of higher transportation and living costs.
He argued that the savings from subsidy removal should have been channelled into productive sectors capable of improving the standard of living, strengthening infrastructure and reducing the economic pressure on households.
Obi said the failure to properly manage the proceeds of subsidy removal should not lead the country back to a system that had placed a significant financial burden on government.
His comments represent a clear divergence from Atiku's emerging position on the subsidy question and add to the broader economic policy debate within opposition circles ahead of the 2027 presidential election.
The former Anambra governor has consistently argued for greater transparency and accountability in the management of public resources, insisting that Nigeria's economic reforms must ultimately translate into measurable improvements in the lives of ordinary citizens.
The petrol subsidy was removed by President Bola Ahmed Tinubu shortly after his inauguration on May 29, 2023, triggering a substantial increase in petrol prices and intensifying concerns over transportation costs, inflation and the general cost of living.
With the 2027 elections approaching, subsidy policy is increasingly becoming a major issue in the contest over competing economic visions, with political leaders divided over whether Nigeria should sustain the current policy, modify it or reintroduce some form of government intervention.
Obi's latest intervention underscores his position that Nigeria should retain the reform while ensuring that resources saved from subsidy removal are transparently managed and deployed toward economic development and social welfare.
The Analyst Online Media will continue to monitor the evolving debate over fuel subsidy, economic reforms and the policy proposals being advanced by the country's political leaders ahead of the 2027 elections.