Governor Otti Defends Fuel Subsidy End, Warns Reversal Will Hurt Nigeria

Abia State Governor, Alex Otti, recently voiced his strong support for the abolition of fuel subsidy, asserting that proponents advocating for its reintroduction harbor ill intentions for the nation. Governor Otti made these remarks during an exclusive interview broadcast on Arise Television last Friday. He used the platform to discuss the economic repercussions of the subsidy's removal and reiterated his long-held stance on the matter. The governor emphasized his consistent disagreement with subsidizing fuel consumption, advocating instead for government resources to be channeled towards bolstering production.

"I don’t have a problem supporting production, but consumption should not be subsidised," Otti stated directly. He reminded listeners that he had previously advocated for the subsidy's discontinuation as far back as 2020, amidst the COVID-19 pandemic, a period marked by a significant drop in global crude oil demand. He posited that the unique conditions within the oil market at that time offered an ideal window for Nigeria to implement the subsidy removal.

Furthermore, Otti contended that the practice of subsidizing consumption inadvertently promoted the profligate use of fuel, as end-users were shielded from the true market price. He remarked, "You know, as election approaches, people will be making all sorts of arguments, but removing the subsidy was the right thing to be done. And I don’t think anybody who is praying that subsidy returns means well for the country."

The Abia helmsman further characterized the subsidy system as prone to exploitation, labeling it a "scam." He elaborated that the effective subsidization of fuel consumption diminished the motivation for motorists to moderate their usage. Otti illustrated this point by saying, "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."

While acknowledging that the removal of the subsidy would inevitably lead to initial difficulties for Nigerians, Otti firmly asserted the policy's essential nature. He conceded, "There will be the pain initially."

It would be recalled that President Bola Tinubu declared the cessation of the petrol subsidy on May 29, 2023, almost immediately after taking his oath of office. This move brought an end to a long-standing arrangement where the government bore a portion of petrol costs to maintain artificially low pump prices for the populace. The policy decision resulted in a significant surge in petrol prices and exacerbated the cost of living. Despite this, subsequent governmental interventions have aimed at mitigating the harsh effects of the reform. Nevertheless, public discourse continues to see persistent appeals for the subsidy's reinstatement, as citizens grapple with elevated fuel and transportation expenses.