Peter Obi, the presidential candidate of the Nigeria Democratic Congress (NDC), has publicly reaffirmed his support for the removal of the petrol subsidy while accusing the current administration of wasting the financial gains from the policy. Speaking on Monday at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State, Obi insisted that subsidy removal remains necessary despite the government's failure to manage the proceeds effectively.
Obi's stance on subsidy removal
"I subscribe and maintain that you need to remove the subsidy. Mismanagement of the proceeds shouldn't be the reason for not removing it," said Obi, a former governor of Anambra State. According to The Cable, he added that his own leadership blueprint had always included a plan to remove the subsidy "in an organised manner", with any recovered funds channelled into investments that would benefit ordinary Nigerians.
Obi's remarks come amid a broader political dispute over the subsidy policy, which has drawn sharp reactions from political figures and the presidency. His comments were part of a keynote address at the NBA conference, where he outlined his vision for economic reform and public welfare.
How the N16 trillion could have been spent
Rather than defend the status quo, Obi turned his criticism on how the government has handled the savings from subsidy removal. He argued that just five per cent of the N16 trillion the government claimed to have recovered could have been used to build primary healthcare centres across the country. He also suggested that a portion of the funds could have addressed the growing burden of kidney disease in Nigeria, or been added to the country's sovereign wealth fund to secure future generations.
Obi stressed that Nigerians should not be expected to bear economic hardship while those in government continue to "feast" on public funds. His comments highlight a growing frustration among citizens over the lack of tangible benefits from the subsidy removal, which was introduced in May 2023.
Government's financial figures and Atiku's reversal
Finance Minister Taiwo Oyedele recently confirmed that the removal of petrol subsidy generated N15.8 trillion in resources for the federation between June 2023 and December 2025. Of that total, Oyedele said the federal government received N5.4 trillion, with the remaining N10.4 trillion distributed among states and local governments.
The controversy has also drawn in former Vice-President Atiku Abubakar, who had previously signalled support for ending the subsidy before the 2023 election. Last Wednesday, Atiku reversed that position during an interview, saying he would restore petrol subsidy if elected president in 2027, citing the government's failure to account for the funds saved.
Presidency's response and political implications
President Bola Tinubu responded sharply to Atiku's proposal, saying it showed "serious ignorance of governance and economy", and pointed to the financial difficulties some states faced in paying salaries and pensions before he took office. Tinubu's administration has defended the subsidy removal as a necessary reform to free up resources for development.
In a related development, Legit.ng earlier reported that Senator Rabiu Kwankwaso said his choice to run with Peter Obi rests on national balance, equity and the need for democratic change. Kwankwaso revealed that consultations with the Kwankwasiyya Movement, NNPP supporters and the Obidient Movement shaped the decision. The former Kano governor said the North-South arrangement includes a one-term understanding before power returns to the North.
The ongoing debate over subsidy removal is expected to remain a central issue in the run-up to the 2027 elections, with political leaders staking out contrasting positions on the policy and its impact on Nigerians.
