Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has rejected the proposal to restore Nigeria’s former fuel subsidy regime, arguing that the country’s major problem is corruption and poor management of public resources.
Obi made the position known while responding to questions about fuel subsidy removal, its impact on Nigerians and the proposal by former Vice-President Atiku Abubakar to restore the subsidy if elected president in 2027.
The former Anambra governor said he supports the removal of the subsidy but argued that the process must be accompanied by measures that protect Nigerians, boost production and ensure that savings from subsidy removal are properly invested.
According to Obi, Nigeria cannot sustainably return to a system in which government spends heavily to keep petrol prices artificially low while the underlying problems of corruption, inefficient refining and weak economic productivity remain unresolved.
He said the focus should instead be on eliminating corruption in the petroleum sector, strengthening domestic refining capacity and creating targeted support for vulnerable sectors of the economy.
“Let’s deal with the issue and the problem. Our problem today is corruption. Period,” Obi said during the interview.
Obi argued that subsidy should not necessarily mean government spending to keep the price of petrol low for everybody.
Instead, he said government could provide targeted support to sectors such as agriculture, small businesses and other productive activities that create jobs and reduce poverty.
He cited the financing of small and medium-sized businesses in other countries as an example of how government support could be directed towards production rather than general consumption.
The NDC candidate said Nigeria should use resources saved from subsidy removal to strengthen the productive economy, particularly agriculture, manufacturing, education and employment.
He maintained that a more productive economy would ultimately reduce the pressure on households and businesses created by high energy and transportation costs.
Obi also challenged the argument that restoring subsidy would solve the economic difficulties facing Nigerians.
Responding to the position attributed to Atiku, who has said he would restore fuel subsidy under certain conditions, Obi said the fundamental issue remained corruption and the management of the country's resources.
He argued that if corruption surrounding the petroleum sector was eliminated, Nigerians would have a clearer picture of the actual cost of producing and supplying fuel.
Obi also advocated increased domestic refining and more efficient management of the petroleum industry, saying Nigeria should be able to use its resources to produce for domestic consumption and eventually generate export revenue.
The former governor said agriculture would be central to his economic strategy, particularly in providing jobs and reducing poverty.
He argued that government should provide farmers with the necessary support, including access to inputs, financing, skills and other forms of assistance that can increase production.
Obi pointed to the agricultural potential of northern Nigeria, arguing that the region's large areas of arable land could be used to produce food for the domestic market, supply industries and generate exports.
He said government support should be designed to make Nigerians productive rather than simply provide temporary relief.
The disagreement between Obi and Atiku reflects one of the major economic policy questions likely to feature in the 2027 presidential campaign.
While the Tinubu administration removed the petrol subsidy in 2023, the decision triggered a sharp rise in fuel and transportation costs and has remained politically contentious.
Obi has argued that the subsidy regime was plagued by corruption and poor management, while insisting that the benefits of subsidy removal must be redirected towards productive investment and targeted support for Nigerians. Recent public commentary from Obi has similarly stressed that mismanagement of subsidy proceeds, rather than removal alone, is a major concern.
With the 2027 election approaching, the competing positions of opposition figures such as Obi and Atiku are expected to feature prominently in debates over how Nigeria should manage fuel prices, public spending, agriculture, jobs and the wider cost-of-living crisis.
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