Otti Backs Fuel Subsidy Removal, Says Return Would Hurt Nigeria

Abia State Governor Alex Otti has backed the removal of Nigeria’s petrol subsidy, saying reversing the policy would undermine the country’s economic progress.

Otti said the decision to remove the subsidy was difficult but necessary, arguing that the policy had placed a significant burden on government finances and diverted resources towards subsidising consumption.

The governor made the remarks while discussing President Bola Tinubu’s economic reforms and their impact on the country.

According to Otti, the removal of the subsidy and the floating of the naira have increased the resources available to the Federal Government, states and local governments.

He said the additional revenue had enabled governments to meet obligations such as salary payments while also creating room for infrastructure development and programmes aimed at supporting production.

Otti acknowledged that the reforms had caused economic difficulties for many Nigerians, but said the effects should be viewed within the context of correcting what he described as longstanding economic imbalances.

He maintained that difficult reforms could produce short-term consequences while creating conditions for the economy to adjust over time.

The governor said he had previously advocated the removal of the petroleum subsidy, including in newspaper columns written before the Tinubu administration took office.

Otti argued that the subsidy system had become unsustainable and that maintaining it would continue to place pressure on public finances.

His position comes amid continued debate over the effects of subsidy removal, particularly its impact on fuel prices, household spending, transportation costs and inflation.

The Federal Government has similarly argued that restoring the subsidy would reverse some of the fiscal gains associated with its economic reforms. It has maintained that resources previously committed to petrol subsidies can instead support infrastructure, social programmes and other public priorities.

Otti said the focus should therefore remain on building a productive economy capable of generating jobs, supporting businesses and improving government revenues.

He also called for continued commitment to economic reforms, arguing that abandoning them could return the country to the financial pressures associated with the previous subsidy regime.

The debate over petrol subsidy policy remains a major economic issue in Nigeria, with government officials, economists, businesses and citizens continuing to assess the costs and benefits of the reforms.