Fuel Subsidy: Proceeds Must Be Accounted for, Not Reversing the Policy — Obi

Fuel Subsidy: Proceeds Must Be Accounted for, Not Reversing the Policy — Obi

Former Anambra State Governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reiterated his support for the removal of petrol subsidy, saying alleged mismanagement of the proceeds should not be used as a justification for reversing the policy.

Obi stated this on Monday while speaking at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

The former presidential candidate maintained that although the removal of the subsidy had created economic difficulties for many Nigerians, the policy itself should not necessarily be reversed because of concerns over how the savings have been managed.

According to Obi, the focus should instead be on ensuring that the funds saved from subsidy removal are transparently accounted for and channelled towards productive sectors of the economy that directly improve the lives of citizens.

He argued that returning to the subsidy regime without addressing the underlying challenges in the country’s management of public resources would not solve Nigeria’s economic problems.

Obi’s position comes amid continued debate over the impact of petrol subsidy removal on Nigerians, with concerns over rising living costs, transportation fares and the broader economic consequences of the policy.

The subsidy was removed by President Bola Ahmed Tinubu in May 2023, shortly after his inauguration, as part of the Federal Government’s efforts to reduce expenditure and reform the petroleum sector.

Since then, the policy has remained one of the most contentious economic reforms in the country, with supporters arguing that it would free up government resources for development, while critics have called for measures to cushion its impact on households and businesses.

Obi, however, maintained that the solution lies in accountability and prudent management of the resources generated from the reform rather than a return to the subsidy system.