Abia State Governor Alex Otti has opposed calls for the return of petrol subsidy, arguing that government resources should instead be used to boost production and create an environment where businesses can operate more efficiently.
Otti, a member of the Labour Party, made his position known during an interview on Arise TV on Thursday, where he also expressed support for some of the economic policies introduced by President Bola Tinubu’s administration.
The governor said he had consistently opposed subsidising consumption, arguing that such a policy can encourage waste and create opportunities for 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.
According to him, people tend to use resources more carefully when they are required to pay the actual cost, while subsidies can reduce that incentive.
“When you subsidise consumption rather than production, you are just subsidising laziness. You are subsidising, sometimes, corruption,” he said.
Otti acknowledged that the removal of the petrol subsidy has placed pressure on Nigerians, but maintained that ending the policy was the appropriate decision.
“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.
The governor went further to caution politicians and others advocating a return to the subsidy arrangement.
“If you are pushing for a subsidy to return, you don’t mean well for the country,” Otti said.
Rather than subsidising fuel consumption, he argued that government should focus on measures that support businesses and improve the overall productive capacity of the economy.
Otti particularly pointed to electricity as an area where government intervention could have a greater impact on businesses.
He said companies that depend on petrol and diesel for production would be better served if they had access to reliable electricity.
“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.
The governor’s comments come amid renewed debate over the future of petrol subsidy ahead of the 2027 general election.
In August, former Vice-President and African Democratic Congress presidential candidate Atiku Abubakar said he would restore petrol subsidy if elected president in 2027.
Atiku had questioned how the funds saved from the removal of the subsidy were being used, arguing that the money was supposed to help reduce poverty and support education.
“I did not oppose the removal of the oil subsidy, but where is the money? Where did it go? It was intended to reduce poverty and help children attend school. Where is the money now? It seems they are just stealing it,” Atiku said.
The disagreement highlights the continuing political debate over whether Nigeria should maintain the current petrol pricing system or reconsider government intervention in fuel costs.
