Otti Warns Against Return Of Petrol Subsidy

Abia State Governor Alex Otti has warned against any attempt to restore Nigeria’s petrol subsidy, arguing that government resources should be directed towards production rather than subsidising consumption.

Otti, a member of the opposition Labour Party, reiterated his support for the removal of the Premium Motor Spirit subsidy under President Bola Tinubu, despite the economic hardship associated with the policy.

Speaking during an interview on Arise TV on Thursday, the governor said consumption subsidies encourage waste, inefficiency and opportunities for abuse.

“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.

He argued that consumers become more conscious of their usage when they bear the cost themselves, while government support should instead focus on strengthening productive activity and creating an environment where businesses can operate efficiently.

“When you subsidise consumption rather than production, you are just subsidising laziness. You are subsidising, sometimes, corruption,” he said.

Otti said the removal of the petrol subsidy was the right decision despite the hardship it has imposed on Nigerians.

“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.

“If you are pushing for a subsidy to return, you don’t mean well for the country.”

The governor also argued that businesses that depend on petrol for production would not necessarily need a fuel subsidy if the government could guarantee 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.

Otti’s position contrasts with that of former Vice-President Atiku Abubakar, who said in August that he would restore the petrol subsidy if elected president in 2027.

Atiku said the government had failed to account for funds saved from the removal of the subsidy.

“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 in Hausa.