SUBSIDY DEBATE DEEPENS AS APC REJECTS ATIKU’S PLAN, ADC DEMANDS N15.8TN ACCOUNTABILITY

The controversy over Nigeria’s petrol subsidy policy has intensified ahead of the 2027 general elections, with the All Progressives Congress rejecting former Vice President Atiku Abubakar’s proposal to restore the subsidy, while the African Democratic Congress is demanding an account of the additional revenue generated since the policy was removed.

The APC National Chairman, Professor Nentawe Yilwatda, warned that returning to the former subsidy regime could undermine the economic gains the Federal Government says it has achieved through its ongoing reforms.

Yilwatda argued that restoring the subsidy would place fresh pressure on government finances and could affect the ability of federal and state governments to fund workers’ salaries, education, healthcare, infrastructure and other essential services. 

Atiku, who is the ADC presidential candidate for the 2027 election, recently pledged to reinstate the petrol subsidy if elected, arguing that the policy would help reduce the hardship Nigerians have experienced since subsidy removal.

President Bola Tinubu announced the removal of the petrol subsidy on May 29, 2023, shortly after assuming office. The decision immediately pushed up petrol prices and contributed to increases in transportation and living costs.

The APC has consistently defended the decision, maintaining that subsidy removal was necessary to eliminate what it described as an unsustainable financial burden on the government.

Yilwatda said Nigerians should consider not only the immediate reduction in petrol prices that a subsidy could provide but also the question of how such a programme would be financed over the long term.

He argued that the previous subsidy system placed significant pressure on public finances and contributed to difficulties faced by some state governments in paying salaries and pensions.

The APC chairman also maintained that increased allocations to states following subsidy removal had improved their financial capacity, warning that returning to the previous system could reverse those gains.

He further pointed to government initiatives in education, including the Nigeria Education Loan Fund, arguing that sustainable government revenue was necessary to continue funding programmes that support young Nigerians.

According to the APC, the subsidy debate should therefore focus on creating an economy capable of funding public services without depending on what it considers an expensive and opaque subsidy system.

The party, however, acknowledged that subsidy removal had caused significant hardship for Nigerians and called for stronger measures to cushion the effects of the reform on vulnerable citizens.

While the APC attacked Atiku’s proposal, the ADC shifted attention to the revenue generated by the Federal Government since the subsidy was removed.

The opposition party challenged the Tinubu administration to explain how Nigerians have benefited from what it said were N15.8tn in additional resources generated from the subsidy removal and foreign exchange reforms between June 2023 and December 2025.

The ADC claimed that approximately N5.4tn of the additional resources went to the Federal Government, another N5.4tn accrued to the states, while local governments received about N3.9tn.

The party also cited increased allocations from the Federation Account Allocation Committee, claiming that states received a combined N47.25tn between 2023 and 2025.

According to the ADC, the increase in government revenue has not translated into a corresponding improvement in the living conditions of ordinary Nigerians.

The party questioned why Nigerians continue to face high food prices, expensive transportation, rising petrol costs and other economic difficulties despite the increase in government revenues.

The ADC also demanded that the Federal Government and state governments publish details of projects and programmes funded with the additional resources generated since the reforms.

The opposition party argued that Nigerians should be able to identify tangible improvements in areas such as roads, hospitals, schools, transportation and other public services.

It also raised concerns about borrowing by state governments despite the increased revenue available to them, claiming that about 20 states borrowed a combined N458bn in 2025.

The ADC stressed that its criticism should not be interpreted as support for the old subsidy system, which it described as lacking transparency and vulnerable to abuse.

Instead, the party said it favoured measures that would increase domestic refining capacity while providing targeted and transparent support to reduce the burden of high fuel prices on citizens.

The subsidy dispute is expected to become an increasingly important issue ahead of the 2027 presidential election, with political parties likely to use petrol prices, food inflation, transportation costs and household purchasing power as major campaign issues.

The APC is defending the economic reforms of the Tinubu administration, while the ADC and other opposition groups are increasingly questioning whether the benefits of the reforms have reached ordinary Nigerians.

With both sides presenting sharply different assessments of the impact of subsidy removal, the debate is likely to remain at the centre of Nigeria’s political and economic discussions as the country moves closer to the 2027 elections.