Those Seeking Return of Petrol Subsidy Don’t Mean Well for Nigeria – Abia Governor

Abia State Governor, Alex Otti, has opposed calls for the reinstatement of petrol subsidy, arguing that subsidising consumption encourages inefficiency, waste and corruption.

Otti, a member of the opposition Labour Party (LP), also reiterated his support for some of the economic policies of President Bola Tinubu, including the removal of petrol subsidy.

The governor spoke during an interview on Arise TV on Thursday, where he maintained that government resources should instead be directed towards boosting production and creating an enabling environment for businesses.

Otti said he had consistently opposed fuel subsidy, noting that he had advocated its removal as far back as 2020 during the COVID-19 pandemic.

“I’ve always been consistent on subsidies. And I’ve written extensively. I also refer you to my backpage in THISDAY, including the one that I wrote in 2020 during COVID-19,” he said.

According to him, subsidising consumption rather than production promotes waste and creates opportunities for abuse.

“When you subsidise consumption rather than production, you are just subsidising laziness. You are subsidising, sometimes, corruption,” Otti said.

He acknowledged that the removal of the petrol subsidy has caused hardship for Nigerians but maintained that the decision was necessary.

“You know, as election approaches, people will be making all sorts of arguments. But removing the subsidy was the right thing to be done,” he said.

“If you are pushing for a subsidy to return, you don’t mean well for the country.”

Otti also argued that businesses that rely on petrol for production would benefit more from a stable electricity supply than from fuel subsidies.

“For the people who use it for production, for their factories, those people, they really don’t need the subsidy. They just need constant power supply. And once you’re able to guarantee them constant power supply, they’ll pay,” he added.

His comments come weeks after former Vice-President Atiku Abubakar, the presidential candidate of the African Democratic Congress (ADC), said he would restore petrol subsidy if elected president in 2027.

Atiku had also questioned how the funds saved from the removal of the subsidy had been utilised, arguing that the savings were intended to reduce poverty and improve access to education.