2027: I subscribe to subsidy removal, Peter Obi rejects Atiku stands to restore subsidy

The 2027 presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reiterated his support for the removal of petrol subsidy by President Bola Tinubu, insisting that alleged mismanagement of the proceeds should not be used as a reason to reverse the policy.

Obi stated this on Monday during a panel session at the Nigerian Bar Association (NBA) Annual General Conference in Port Harcourt, Rivers State.

The former Anambra State governor said he had consistently supported subsidy removal, arguing that the real concern should be how the resources recovered from the policy are managed and deployed.

“Well, I subscribe, and I maintain that you need to remove subsidy. Mismanagement of the proceeds should not be the reason for not removing it,” Obi said.

According to him, the government should have provided measures to cushion the immediate impact of subsidy removal while investing the savings in sectors capable of improving Nigerians’ quality of life.

“What we should have done is that when we remove subsidy, we would have given the people an alternative usage for the subsidy. What we have today is that that removal and attendant resources being recovered are also being mismanaged and stolen,” he added.

Obi argued that the resources generated from the policy should have been channelled into critical sectors, particularly healthcare, while part of the proceeds could also have been saved to strengthen Nigeria’s sovereign wealth position.

“It’s what you use the money for that is the problem,” he said.

Subsidy Removal Debate Intensifies Ahead of 2027

The debate over petrol subsidy removal has remained one of the most contentious issues surrounding the Tinubu administration’s economic reforms.

Tinubu announced the removal of the subsidy during his inauguration on May 29, 2023, a decision that immediately triggered a significant increase in petrol prices and contributed to higher transportation, food and other living costs.

The Federal Government has continued to defend the policy, arguing that the resources previously used to subsidise petrol can now be deployed to other areas of national development.

However, opposition politicians have continued to question how the savings have been utilised and whether Nigerians have received sufficient benefits from the policy.

Obi’s latest position also comes amid a renewed political disagreement over the future of petrol subsidy ahead of the 2027 presidential election.

Former Vice-President and presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, has promised to restore a targeted subsidy if elected, arguing that the Tinubu administration has failed to adequately account for the resources generated after the policy was removed.

Tinubu has criticised the proposal, arguing that a return to the subsidy regime would undermine the economic reforms introduced by his administration.

While Obi disagrees with Atiku on the question of restoring the subsidy, he shares the former vice president’s concerns over the management of the resources generated following its removal.

For Obi, the central issue is not whether subsidy should exist, but whether the government is properly deploying the funds recovered from its removal to deliver tangible improvements in the lives of Nigerians.

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