National Chairman of the All Progressives Congress (APC), Nentawe Yilwatda, has warned that former Vice-President Atiku Abubakar’s proposal to restore petrol subsidy could return Nigeria to the era of fuel queues and make it difficult for governments to sustain the current minimum wage.
Yilwatda spoke in Abuja while receiving a delegation of economic stakeholders who visited to discuss Nigeria’s economy, ongoing reforms and ways to achieve sustainable growth.
His comments followed Atiku’s recent pledge to restore petrol subsidy if elected president in 2027. Atiku, the African Democratic Congress (ADC) presidential candidate, has also accused the Federal Government of failing to properly account for savings from the removal of the subsidy.
President Bola Tinubu announced the removal of petrol subsidy on May 29, 2023, a decision that led to a sharp increase in petrol prices and higher transportation and living costs.
Yilwatda urged Nigerians to look beyond the immediate benefit of cheaper petrol and consider who would ultimately bear the cost of restoring the subsidy.
“Subsidy may appear attractive because it promises cheaper petrol, but Nigerians must also ask the bigger question: who pays for the subsidy?”
According to him, subsidy payments could place pressure on government revenues and reduce the funds available for salaries, pensions, education, healthcare and infrastructure.
The APC chairman said increased federal allocations following the removal of the subsidy had also strengthened the finances of several state governments, some of which previously struggled to pay salaries and pensions.
He therefore argued that any proposal to restore subsidy should undergo serious economic scrutiny to avoid returning Nigeria to the fiscal difficulties associated with the previous system.
Yilwatda also linked the subsidy debate to the implementation of the new minimum wage, saying governments need stronger and more sustainable revenues to maintain higher wages while meeting other obligations.
“The challenge is not merely to announce higher wages but to create an economic environment in which governments can consistently pay them.”
He further warned that restoring subsidy could affect funding for education and other critical sectors, recalling the prolonged disruption of academic activities in Nigerian universities under the previous administration.
Yilwatda maintained that a return to what he described as an unsustainable subsidy regime could have consequences beyond petrol prices, particularly if reduced government revenue affects essential public services.
“When government revenue is squeezed, the first victims are often the critical sectors that directly affect the welfare and future of our people.”
Source: Nentawe Yilwatda / APC.
