Peter Obi Supports Petrol Subsidy Removal, Questions How Savings Are Being Used

Peter Obi Supports Petrol Subsidy Removal, Questions How Savings Are Being Used

Former Anambra State Governor and 2027 presidential candidate Peter Obi has thrown his weight behind the removal of Nigeria’s petrol subsidy, saying poor management of the money saved from the policy should not be a reason to bring the subsidy back.

Obi made the comment on Monday, August 24, while speaking at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

According to him, he has always supported the removal of the subsidy. His concern, however, is what happened to the resources that became available after the policy was scrapped.

“I subscribe and maintain that you need to remove subsidy. Mismanagement of the proceeds shouldn’t be the reason for not removing it,” Obi said.

He argued that the government should have given Nigerians something tangible in return for the sacrifices that came with the policy. Rather than simply removing the subsidy, he said the resources recovered should have been channelled into areas that directly improve people’s lives.

Obi pointed to healthcare as one area where the money could have made a significant difference. He suggested that part of the resources could have been used to strengthen primary healthcare centres across the country and address other pressing health challenges.

He also questioned the way the government has accounted for the savings from the policy. Obi referred to about ₦16 trillion reportedly recovered through subsidy removal and argued that the resources should have been managed more carefully for the benefit of Nigerians.

The figure is based on the Federal Government’s disclosure that the removal of the petrol subsidy mobilised ₦15.8 trillion in resources for the Federation between June 2023 and December 2025. Of that amount, ₦5.4 trillion went to the Federal Government, while ₦10.4 trillion was shared among state and local governments through the Federation Account.

However, the ₦15.8 trillion should not be understood as money sitting untouched in a special government account. The Finance Minister, Taiwo Oyedele, explained that the figure represents resources made available to the Federation after the government stopped funding the petrol subsidy.

For Obi, the answer is therefore not to return to the old subsidy system. Instead, he wants the government to ensure that the resources freed by its removal are properly managed and translated into improvements that Nigerians can actually see and feel.

His position comes at a time when the subsidy debate is gaining fresh attention, particularly after former Vice-President Atiku Abubakar said he would restore the subsidy if elected president in 2027. Obi’s latest comments show that he takes a different position: he supports keeping the subsidy removed but wants greater accountability over the resources generated by the policy.

The bigger question now is whether the resources freed by subsidy removal are being used in ways that can genuinely improve the lives of Nigerians.

Do you think Nigeria should keep the petrol subsidy removed and focus on better management of the savings?