Obi: Subsidy Removal Should Stay, Mismanagement of Savings Not Enough to Reverse Policy

Peter Obi, presidential candidate of the Nigeria Democratic Congress, NDC, has said he supports the removal of petrol subsidy, arguing that alleged mismanagement of the funds saved from the policy should not lead to its reversal.

The former Anambra State governor said the subsidy had to be removed but faulted the Federal Government for failing to put adequate measures in place to shield Nigerians from the immediate consequences.

Speaking on Monday at the Nigerian Bar Association conference in Port Harcourt, Rivers State, Obi said the government should have created alternatives for citizens while investing the savings from the subsidy removal in areas that would generate economic benefits.

“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.

Obi further explained that the savings should have been redirected into productive investments rather than being poorly managed.

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

The NDC presidential candidate’s position places him at odds with former Vice President Atiku Abubakar, who is seeking the presidency under the African Democratic Congress, ADC. Atiku has said he would restore the petrol subsidy if he wins the 2027 presidential election.

Obi alleged that resources generated from the removal had been mismanaged and stolen, stressing that the policy itself was not the major problem.

According to him, the focus should instead be on ensuring that the funds recovered through subsidy removal are properly managed and invested.

He said his approach to the issue had already been outlined in his manifesto before the 2023 presidential election.

“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.

President Bola Tinubu removed the petrol subsidy shortly after taking office in May 2023. The decision triggered a substantial rise in petrol prices and contributed to mounting concerns about the cost of living.

The Federal Government has maintained that ending the subsidy was necessary to reduce the burden on government finances. However, critics have continued to demand greater transparency over how the money saved from the policy has been spent.

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