Peter Obi backs petrol subsidy removal, demands transparency

Presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reaffirmed his support for the removal of petrol subsidy, arguing that the policy should have been implemented in an organised manner with the resulting savings channelled into projects that directly benefit Nigerians.

Obi spoke on Monday at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

The former Anambra State governor said the mismanagement or alleged diversion of funds recovered from subsidy removal should not be used as an argument for reversing the policy.

“I subscribe and maintain that you need to remove subsidy. Mismanagement of the proceeds shouldn’t be the reason for not removing it,” Obi said.

According to him, the major problem with the policy was not the decision to remove the subsidy but the failure to provide adequate alternatives for Nigerians and properly deploy the resources recovered.

“What we should have done is that when we removed the subsidy, we would have given the people alternative usage for the subsidy,” he said.

Obi alleged that the resources generated since the removal of the subsidy had not been adequately accounted for or deployed for the benefit of ordinary Nigerians.

“What we have today is that, that removal and the attendant resources being recovered is also being mismanaged and stolen. For example, we have received, according to them, N16 trillion,” he said.

The NDC candidate said his proposed approach would have involved removing the subsidy in a structured manner while ensuring that every naira recovered was invested in productive sectors of the economy.

‘N800bn Could Fund Primary Healthcare Centres’

Obi said healthcare should have been one of the major beneficiaries of the savings from subsidy removal, particularly given the country’s challenges in primary healthcare.

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“The number one thing a nation needs to develop is health. But today, our health is very poor, our primary care is very poor,” he said.

Using the government’s reported figure of about N16 trillion in subsidy-related resources, Obi argued that five per cent of the amount would amount to approximately N800 billion.

He said such funds could be used to establish primary healthcare centres across the country.

“Assuming, let me use five per cent, you said that they saved N15.8 trillion. So, according to them, N16 trillion. So, five per cent of that is just about N800 billion,” he said.

According to Obi, the government could establish primary healthcare facilities in every ward at an estimated cost of about N100 million per centre.

Obi Raises Concern Over Kidney Care

The former governor also argued that part of the subsidy savings could be deployed to address kidney-related health challenges, including the shortage of dialysis centres and machines.

“If you decide today, we have an issue now with kidney dialysis. We have over 25 million Nigerians with kidney issues,” Obi claimed.

He said Nigeria needed significantly more kidney treatment centres and dialysis machines than were currently available.

“To build a kidney centre, you need N200 million. And we need about a thousand centres when we have less than 200,” he said.

“We need about 5,000 machines when we have less than 800. It costs you N200 million to do a centre, and it costs you exactly N10 million to buy one machine.”

Obi also suggested that the government could have invested part of the funds in the country’s sovereign wealth fund to build long-term financial capacity.

He argued that an additional $10 billion in the sovereign wealth fund could provide the country with a stronger financial base for strategic investments.

‘Nigerians Cannot Be Asked to Fast While Leaders Feast’

Obi criticised what he described as the unequal burden of economic reforms, saying Nigerians should not be continually asked to make sacrifices while public resources are allegedly mismanaged.

“What I’ve said is that people in government have asked Nigerians to fast. Okay. They cannot be feasting when Nigerians are fasting,” he said.

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His comments come amid renewed political debate over the impact of petrol subsidy removal and the utilisation of the resources generated by the policy.

Opposition figures, including former Vice-President Atiku Abubakar, have criticised the Federal Government over what they describe as inadequate accountability for the subsidy savings.

Atiku, who had supported subsidy removal during the build-up to the 2023 presidential election, recently said he would restore the subsidy if elected president in 2027.

He argued that the Bola Tinubu administration had failed to adequately account for funds saved through subsidy removal.

President Tinubu subsequently criticised the proposal, describing it as evidence of “serious ignorance of governance and economy” and arguing that the country faced severe fiscal challenges before his administration assumed office.

FG Says N15.8tn Was Mobilised

The controversy followed a disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that petrol subsidy removal mobilised N15.8 trillion in resources for the federation between June 2023 and December 2025.

Oyedele said, however, that the Federal Government received N5.4 trillion of the amount, while N10.4 trillion was distributed among state and local governments.

According to the minister, the increased resources were reflected in higher revenue collections, particularly as the naira value of dollar-denominated transactions rose following the exchange-rate reforms.

The figures have continued to fuel debate over whether the economic gains from subsidy removal are translating into improved living conditions, infrastructure and social services for Nigerians.

Obi maintained that while subsidy removal was necessary, the success of the policy should ultimately be measured by how effectively the resulting resources are invested to improve the lives of citizens.