Abia State Governor Alex Otti has defended the removal of petrol subsidy, arguing that government resources should support production rather than subsidise consumption.
Otti made the remarks in an exclusive interview with Arise Television on Friday while discussing the economic consequences of subsidy removal and his longstanding position on the policy.
The governor said he had consistently opposed subsidising fuel consumption, maintaining that government intervention would be better directed towards increasing production.
“I don’t have a problem supporting production, but consumption should not be subsidised,” Otti said.
He recalled advocating the removal of the subsidy during the COVID-19 pandemic in 2020, when the global demand for crude oil dropped significantly.
According to Otti, the conditions in the international oil market at the time presented Nigeria with an opportunity to end the subsidy regime.
The governor also argued that subsidising consumption could encourage excessive fuel usage because consumers did not bear the full cost of the product.
“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.
“And I don’t think anybody who is praying that subsidy returns means well for the country.”
READ ALSO:PETROAN Orders Nationwide Fuel Meter Checks After NMDPRA Warning
Otti further criticised the subsidy regime, describing it as susceptible to abuse and calling it a “scam.”
He argued that when consumers were shielded from the actual cost of petrol, they had less incentive to reduce 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 would initially create economic difficulties for Nigerians but maintained that the policy was necessary.
“There will be the pain initially,” Otti said.
President Bola Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, bringing an end to a system under which the Federal Government absorbed part of the cost of petrol to keep pump prices lower.
The policy was followed by a significant increase in petrol prices and contributed to higher transportation and living costs across the country.
The Federal Government and state authorities have subsequently introduced various measures aimed at reducing the impact of the reform on households and businesses.
The subsidy debate has remained a major issue in Nigeria’s economic discourse, with some stakeholders calling for measures to reduce the burden of high energy and transportation costs, while others continue to argue that government resources should be directed towards production, infrastructure and targeted interventions rather than subsidising consumption.