Abia State Governor, Alex Otti, has expressed support for the removal of petrol subsidy, arguing that returning to the policy would not be in Nigeria’s best interest.
Otti stated this during an interview with Arise Television on Friday, where he discussed the economic impact of subsidy removal and his position on the policy.
The governor said he had consistently opposed subsidising fuel consumption, stressing that government resources should instead be channelled towards supporting production.
“I don’t have a problem supporting production, but consumption should not be subsidised,” Otti said.
He recalled that he had advocated for the removal of fuel subsidy during the COVID-19 pandemic in 2020, when global demand for crude oil had dropped significantly.
According to him, the prevailing conditions in the global oil market at the time provided Nigeria with an opportunity to end the subsidy regime.
Otti also argued that subsidising fuel consumption encouraged excessive use because consumers did not bear the full cost of the product.
He said the approach could encourage motorists to use more vehicles and consume more fuel because part of the cost was being covered by government.
“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 added, “And I don’t think anybody who is praying that subsidy returns means well for the country.”
Otti further described the former subsidy arrangement as vulnerable to abuse, referring to it as a “scam.”
He explained that when fuel was subsidised, consumers had less incentive to reduce their consumption.
“So if you are being subsidised, you can just blast all vehicles, maybe 20 vehicles, you put all of them on the road because somebody is paying for it,” he said.
The governor acknowledged that removing the subsidy had initially increased the financial burden on Nigerians, but maintained that the policy was necessary despite the hardship it caused.
“There will be the pain initially,” he said.
President Bola Tinubu announced the removal of the petrol subsidy on May 29, 2023, shortly after assuming office, ending the system through which the government absorbed part of the cost of petrol to keep pump prices lower.
The policy resulted in a significant increase in petrol prices and contributed to higher transportation and living costs across the country.
The Federal Government has since introduced various measures aimed at reducing the impact of the reforms on households and businesses.
However, calls for the return of fuel subsidy have remained part of the national economic debate, particularly as Nigerians continue to contend with higher fuel, transportation and other living costs.
