Abia State Governor, Alex Otti, has expressed his support for the removal of fuel subsidy, stating that those advocating for its return do not have the best interests of Nigeria at heart. In an interview with Arise Television, Otti discussed the economic implications of subsidy removal and reiterated his long-standing stance on the policy. He emphasized that government support should focus on production rather than consumption.
Otti recalled that during the COVID-19 pandemic in 2020, he wrote in support of subsidy removal due to the sharp decline in global crude oil demand. He saw this as an opportunity for Nigeria to eliminate the subsidy, given the prevailing market conditions. According to Otti, subsidizing fuel consumption leads to wasteful usage, as consumers do not bear the full cost of fuel.
The governor argued that the subsidy regime had become prone to abuse, describing it as a "scam." He explained that when fuel consumption is subsidized, motorists have less incentive to limit their usage, leading to increased consumption. Otti acknowledged that the removal of subsidies would initially cause hardship for Nigerians but maintained that the policy was necessary for the country's economic well-being.
President Bola Tinubu announced the removal of petrol subsidy on May 29, 2023, shortly after taking office, ending a system where the government absorbed part of the petrol cost to keep pump prices lower for consumers. This policy change led to a sharp increase in petrol prices and contributed to higher living costs. Despite successive government measures to cushion the impact, calls for a return to subsidy have continued.
Otti emphasized that he had consistently opposed subsidizing fuel consumption, arguing that government support should instead be directed towards production. He stated, "I don't have a problem supporting production, but consumption should not be subsidized." The governor's stance on subsidy removal has been consistent, even in the face of public debate and calls for its return.
The removal of fuel subsidy has been a contentious issue in Nigeria, with many citizens struggling with the effects of higher fuel and transport costs. However, Otti remains convinced that the policy is necessary for Nigeria's economic growth. He urged Nigerians to be patient and to understand the long-term benefits of the policy.
Otti's support for subsidy removal is part of a broader effort to reform Nigeria's economy. As governor, he has been working to implement policies that promote economic growth and development. His stance on subsidy removal reflects his commitment to creating a more sustainable and efficient economy.
Key points
- Abia State Governor Alex Otti supports fuel subsidy removal.
- Otti believes those calling for subsidy return do not mean well for Nigeria.
- Subsidy removal was necessary for Nigeria's economic well-being.
