Atiku playing to the gallery, 15 northern states ‘ll collapse if subsidy returns – OAU prof

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A collage of Atiku (left) and Professor Ogunyemi

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Professor Tunji Ogunyemi of Obafemi Awolowo University, OAU, in Ile-Ife, has explained how 15 states in the northern part of Nigeria will collapse if petroleum subsidy is returned as some politicians have been advocating.

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Read Also: 2027: Tinubu panicky, plots to reintroduce subsidy through backdoor, Atiku alleges

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He added the African Democratic Congress, ADC, presidential candidate’s position on subsidy was, “with due respect”, politics and playing to the gallery.

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The don, a prominent economic historian, lawyer, public affairs analyst, further noted that only four states can survive without federal allocation.

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Professor Ogunyemi made the points in a podcast – Open Forum 360, by Dare Adekanmbi.

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According to him, “I think it is calamitous, to say the least, if we reverse the subsidy regime in Nigeria in favour of returning the subsidies.

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“It will lead to four disabilities. The first is that there will be reduced accrual to the Federation Account.

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“The Federation Account is the jugular of more than 30 states in the federation. Only about four states in Nigeria can survive without the Federation Account.

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“So if you now say reduce the accrual from the federal account, I tell you more than about 15 states in the north will collapse. They will collapse within three months.

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“The second is that states will return to a regime of incapacity to pay salaries, let alone pensions. That is consumption expenditure.

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“You reduce the revenue in that respect, you will see a situation in which government will not be able to support its minimum expenditure, let alone go for capital expenditure.

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“The fourth and the final one is that Nigeria will not be able to meet its debt obligations.”

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On Atiku

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On Atiku Abubakar (the African Democratic Congress, ADC, presidential candidate’s) position, Professor Ogunyemi said the former vice-president should be clearer about the implications of his policy proposal.

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“I think it is playing to the gallery, with due respect to him. He should be a little less opaque about his policy.

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“You don’t want to get political support through votes or more votes by wanting to cut the jugular of your country,” Ogunyemi said.

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He listed Lagos, Delta and Rivers among states that could cope without the federal monthly allocations. But he mentioned Taraba as an example of a state that cannot survive without federal allocation.

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