Peter Obi, the Labour Party presidential candidate in Nigeria, on the removal of fuel subsidy. President Bola Ahmed Tinubu had recently announced the removal of subsidy on Premium Motor Spirit (petrol), which led to a significant increase in fuel prices and transportation fares in Nigeria.
Peter Obi expressed his support for the removal of fuel subsidy, stating that he had advocated for it even during his time as a member of the Economic Management Team under President Goodluck Jonathan. He referred to fuel subsidy as an “organized crime” that allowed people to steal resources from the country.
However, Obi emphasized the need for accompanying relief policies to cushion the impact of subsidy removal on Nigerians. He compared the process to a dentist numbing the area around a painful tooth before removing it, as opposed to forcefully extracting it. In other words, Obi believes that while subsidy removal is necessary, it should be accompanied by measures to alleviate the burden on the people and utilize the savings to benefit the masses.
Obi criticized the Nigerian government’s approach of asking the people to suffer and sacrifice for a better future, only for the situation to worsen in the long run. He stressed the importance of transparently demonstrating the savings that can be achieved through subsidy removal and utilizing those savings effectively to improve the lives of the citizens.
Despite expectations of the new fuel price regime taking effect from July 1, fuel is already being sold at over N500 per liter across Nigeria.