Gbenga Sodeinde in Ado Ekiti
A former Senator representing Ekiti North Senatorial District, Ayo Arise, has criticised the proposal by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, to restore Nigeria’s fuel subsidy regime if elected in 2027.
He warned that such a move would drag the country back into an era of corruption, economic waste and financial instability.
Arise described the proposal as economically retrogressive, arguing that the removal of fuel subsidy has strengthened the financial capacity of the federal government and state governments, enabling them to meet salary obligations, execute development projects and reduce dependence on borrowing.
Reacting to Atiku’s promise to review the subsidy removal policy, he said those advising the former vice-president had failed to properly explain the far-reaching benefits that have accrued from the policy, insisting that the gains should be assessed beyond the immediate rise in the cost of living.
According to him, one of the most significant achievements of subsidy removal was the improved ability of governments to pay workers’ salaries regularly without repeatedly seeking financial bailouts or loans from the federal government.
He explained that prompt salary payments had a ripple effect on the economy, as workers are able to pay school fees, meet family responsibilities and sustain purchasing power, thereby stimulating economic activities.
The All Progressives Congress (APC) chieftain further maintained that a substantial portion of the increased revenues currently available to governments came from the removal of fuel subsidy, stressing that such funds were now being redirected to critical sectors, including education through the Nigerian Education Loan Fund (NELFund).
Arise also warned that restoring the subsidy regime would reopen a system that was notorious for corruption and abuse, where huge public funds were allegedly paid to individuals for questionable fuel importation claims.
“I would imagine that the former vice president’s advisers have not done him any favour by failing to explain that governments now have sufficient funds to pay salaries without interruption or running to the Federal Government for loans.
“That regime was characterised by massive corruption, mismanagement and the siphoning of public resources. People merely presented importation documents, collected subsidy payments without bringing products into Nigeria, and diverted them to neighbouring West African countries.”