JUST IN: Obi backs petrol subsidy removal, says mismanagement of proceeds not enough to reverse policy

Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reiterated his support for the removal of petrol subsidy, arguing that alleged mismanagement of the proceeds from the policy should not be used as justification for its reversal.

Obi made his position known on Monday while speaking at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

The former Anambra State governor said the removal of petrol subsidy, in itself, was not necessarily the problem, stressing that the major concern was how the resources and savings generated from the policy were being managed by the government.

According to Obi, returning to the subsidy regime would amount to addressing the wrong problem, rather than tackling the alleged mismanagement and lack of accountability surrounding the funds saved from the policy.

He maintained that government must ensure that resources freed from subsidy removal are transparently managed and channelled into productive sectors of the economy, including infrastructure, education, healthcare and other areas capable of improving the welfare of Nigerians.

Obi’s latest comments come amid continued debate over the economic consequences of the petrol subsidy removal, which has contributed to higher fuel prices and increased the cost of transportation and other essential goods and services.

The Federal Government has consistently defended the decision to remove the subsidy, arguing that the policy was fiscally unsustainable and that the resources previously spent on subsidising petrol could be redirected to development projects and social interventions.

However, critics have continued to demand greater transparency over the savings from subsidy removal, particularly as Nigerians grapple with the rising cost of living.

Obi, who was the Labour Party’s presidential candidate in the 2023 election, has increasingly focused his political messaging on economic management, accountability, production and prudent use of public resources ahead of the 2027 general elections.

His latest position therefore places emphasis not on restoring the subsidy regime, but on ensuring that the government properly manages the funds generated from its removal and delivers tangible economic benefits to Nigerians.