Otti backs fuel subsidy removal, says return would hurt Nigeria

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Abia State Governor, Alex Otti, has backed the removal of fuel subsidy, saying those calling for its return do not mean well for Nigeria.

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Otti stated this in an exclusive interview aired by Arise Television on Friday while discussing the economic impact of subsidy removal and his longstanding position on the policy.

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The governor said he had consistently opposed subsidising fuel consumption, arguing that government support should instead be directed towards production.

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“I don’t have a problem supporting production, but consumption should not be subsidised,” Otti said.

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He recalled writing in support of subsidy removal during the COVID-19 pandemic in 2020, when global demand for crude oil had fallen sharply.

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According to him, the period presented an opportunity for Nigeria to remove the subsidy because of the prevailing conditions in the oil market.

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Otti also argued that subsidising consumption encouraged wasteful use of fuel because consumers did not bear 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.

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“And I don’t think anybody who is praying that subsidy returns means well for the country,” he said.

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The governor said the subsidy regime had also become susceptible to abuse, describing it as a “scam”.

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He explained that when fuel consumption was effectively subsidised, motorists had less incentive to limit their usage.

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“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.

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Otti acknowledged that subsidy removal would initially impose hardship on Nigerians but maintained that the policy was necessary.

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“There will be the pain initially,” he said.

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President Bola Tinubu announced the removal of the petrol subsidy on May 29, 2023, shortly after assuming office, ending a system under which the government absorbed part of the cost of petrol to keep pump prices lower for consumers.

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The policy triggered a sharp increase in petrol prices and contributed to higher living costs.

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However, successive government measures have sought to cushion the impact of the reform.

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Calls for a return to subsidy have continued to feature in public debate as Nigerians contend with the effects of higher fuel and transport costs.

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