Abia State Governor, Alex Otti, has criticised calls for the return of fuel subsidy, saying those advocating for its reinstatement do not mean well for Nigeria.
Otti stated this during an exclusive interview with Arise Television on Friday, September 25, while speaking on the economic consequences of subsidy removal and his longstanding opposition to subsidising fuel consumption.
According to the governor, government resources should be channelled towards boosting production rather than keeping the cost of fuel consumption artificially low.
“I don’t have a problem supporting production, but consumption should not be subsidised,” Otti said.
He recalled that he had advocated for subsidy removal during the COVID-19 pandemic in 2020, when the collapse in global crude oil demand created an opportunity for Nigeria to end the policy.
Otti said the prevailing conditions in the international oil market at the time made subsidy removal necessary and argued that continuing to subsidise consumption also encouraged waste.
The governor noted that consumers were less likely to control their fuel usage when they were not bearing the full cost.
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“You know, as election approaches, people will be making all sorts of arguments, but removing the subsidy was the right thing to be done.
“And I don’t think anybody who is praying that subsidy returns means well for the country,” he said.
Otti also questioned the integrity of the former subsidy regime, describing it as a “scam” and arguing that it created room for abuse.
He explained that motorists could consume more fuel than necessary because taxpayers were effectively bearing part of the cost.
“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.
Although he acknowledged the hardship caused by the removal of the subsidy, Otti maintained that the policy was necessary for the country. “There will be the pain initially,” he said.
First Daily recalls that President Bola Tinubu announced the removal of the petrol subsidy on May 29, 2023, shortly after assuming office. The decision ended the system through which the government absorbed part of the cost of petrol to keep pump prices lower.
The removal resulted in a sharp increase in petrol prices and contributed to rising living costs, prompting the government to introduce various measures aimed at easing the impact on Nigerians.
Despite these interventions, demands for the return of fuel subsidy have remained a major part of public debate, particularly as Nigerians continue to contend with higher fuel and transportation costs.