Abia State Governor Alex Otti has expressed his opposition to the return of fuel subsidy, stating that those advocating for its restoration do not have Nigeria's best interests at heart. In an interview with ARISE News, Otti emphasized that the removal of subsidy was necessary to curb wasteful consumption and address the corrupt practices associated with the former system. He noted that he had supported subsidy removal long before President Bola Tinubu ended the policy.
Governor Otti recalled that he had advocated for subsidy removal in 2020 during the COVID-19 pandemic, when global oil demand had fallen sharply. He wrote an article at the time suggesting that it was a good opportunity to remove subsidy. Otti believes that government support should focus on boosting production rather than subsidizing consumption. He argued that subsidizing petrol consumption could lead to excessive use, as consumers would not bear the full cost of their consumption.
Otti described the initial hardship associated with subsidy removal as unavoidable but necessary for responsible consumption. He stated that higher prices would encourage more responsible consumption and that removing the subsidy was the right decision. The governor also described the former subsidy regime as a "scam," citing this as a reason for his opposition to its restoration.
The debate over petrol pricing and subsidy has intensified ahead of the 2027 general elections. Rabiu Kwankwaso, the Nigeria Democratic Congress (NDC) vice-presidential candidate, recently stated that an administration led by presidential candidate Peter Obi would reintroduce petrol subsidy through a different model if elected. Kwankwaso criticized Tinubu's decision to remove the subsidy immediately after assuming office, arguing that the consequences had contributed to the country's economic difficulties.
Kwankwaso proposed exploring measures aimed at lowering petrol prices, such as increasing domestic refining. He suggested that the government could build additional refineries to increase local production and make petrol available to Nigerians at a reasonable price. The NDC and Obi's camp have backed Kwankwaso's proposal for a different form of subsidy.
President Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023, declaring that "subsidy is gone." The decision was followed by a sharp increase in petrol prices and higher transportation and living costs. The subsidy question has remained a major economic and political issue, with opposition figures proposing different mechanisms for reducing petrol prices while the Tinubu administration maintains its reform approach.
Governor Otti's comments reflect his long-held views on subsidy removal, which he believes is essential for Nigeria's economic growth. He emphasized that those praying for subsidy return do not mean well for the country and that the government should focus on supporting production rather than consumption. The debate over subsidy removal is expected to continue as the 2027 general elections approach.
Key points
- Governor Alex Otti opposes the return of fuel subsidy, citing wasteful consumption and fraudulent practices under the old system.
- Otti believes government support should focus on boosting production rather than subsidizing consumption.
- The debate over petrol pricing and subsidy has intensified ahead of the 2027 general elections.
