Aug 24, 2026

Peter Obi Backs Fuel Subsidy Removal, Rejects Reversal Over Mismanaged Savings

By Afolabi Olaiya Idowu in politics

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Port Harcourt, August 24, 2026 — Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, on Monday reaffirmed his strong support for the removal of petrol subsidy, insisting that alleged mismanagement of the recovered funds is no justification for bringing it back.

Speaking during a panel session at the 66th Annual General Conference of the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State, Obi made clear that the policy decision itself remains sound despite the hardship many Nigerians continue to face.

“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 told the gathering of lawyers and stakeholders.

“Give the People Alternatives”

The former Anambra State governor argued that the real failure lies not in the removal of the subsidy but in the absence of a clear plan to cushion the impact and productively deploy the savings.

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

Obi noted that the Federal Government has claimed to have recovered about ₦16 trillion from the policy.

He suggested that proper investment of such funds—for example, into healthcare or a strengthened sovereign wealth fund—would have delivered tangible benefits to citizens.

Consistency With His 2023 Position

Obi reminded the audience that he had publicly committed to subsidy removal in his 2023 manifesto, stressing that it should be done “in an organized manner” with transparent and productive use of the proceeds.

He contrasted this approach with what he described as the current reality of diversion and poor management.

His remarks come against the backdrop of renewed debate over fuel subsidies, particularly after former Vice President Atiku Abubakar indicated he would restore the policy if elected in 2027.

Obi’s position positions him firmly against any return to the previous subsidy regime.

Broader Context

The removal of the petrol subsidy in May 2023 under President Bola Tinubu remains one of the most consequential and contentious economic decisions of the current administration.

While it has freed up significant fiscal resources, critics across the political spectrum continue to question how the savings have been utilized amid persistent inflation, high living costs, and widespread public hardship.

Obi’s intervention at the NBA conference reinforces his long-standing argument that structural reforms must be paired with accountability and deliberate investment in human capital if they are to earn public support.

As the 2027 election cycle gathers momentum, the debate over subsidy policy is likely to remain a central point of difference among leading candidates.