Abia State Governor Alex Otti has defended the removal of the petrol subsidy, saying government resources should be directed towards production rather than subsidising consumption.
Otti, who spoke in an interview with Arise Television on Thursday, warned against attempts to restore the subsidy, arguing that the policy encouraged inefficiency, waste and corruption.
‘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. At that time, nobody was buying oil, and I said it was a good time to remove the subsidy,’ Otti said.
The governor said subsidising consumption reduced incentives for efficient use of resources while creating opportunities for abuse.
‘When you subsidise consumption rather than production, you are just subsidising laziness. You are subsidising, sometimes, corruption,’ he said.
Otti said the removal of the subsidy was necessary despite the economic hardship it initially created for households and businesses.
‘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.’
The debate over petrol subsidy has gained renewed attention ahead of the 2027 general elections, with some political actors proposing alternatives to the current market-based pricing regime.
Former Vice-President Atiku Abubakar, the presidential candidate of the African Democratic Congress, said in August that he would restore petrol subsidy if elected president. He later clarified that his proposal would focus on subsidising production rather than reviving the former import-based arrangement.
Oyo State Governor Seyi Makinde, another presidential candidate, has also rejected a return to the former subsidy regime, arguing instead that Nigeria should reduce petrol costs through the pricing of crude supplied to domestic refineries.
Otti said businesses that consume petrol for production would benefit more from reliable electricity 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 said.
President Bola Tinubu announced the removal of petrol subsidy on May 29, 2023, shortly after assuming office. The policy resulted in a sharp increase in petrol prices and contributed to higher transportation and living costs.
Otti acknowledged the immediate pressure created by the reform but maintained that the long-term focus should be on building an economy where businesses can operate without relying on government intervention.
His position comes as the subsidy debate increasingly features in discussions around the 2027 elections, with political parties and candidates offering different proposals on how Nigeria should manage petrol prices and support consumers.