Nentawe Yilwatda, national chairman of the All Progressives Congress (APC), has warned that former Vice-President Atiku Abubakar’s plan to restore the petrol subsidy could bring back fuel queues and make it harder for governments to pay the current minimum wage.
Yilwatda spoke in Abuja while receiving a delegation of economic stakeholders who visited him to discuss Nigeria’s economy, ongoing reforms and ways to achieve sustainable economic growth.
Atiku, the African Democratic Congress (ADC) presidential candidate, recently said he would restore the petrol subsidy if elected president in 2027.
He also accused the Federal Government of failing to properly account for the money saved from the removal of the subsidy. According to Atiku, the funds should have been used to reduce poverty and support development.
President Bola Tinubu removed the petrol subsidy on May 29, 2023. The decision led to a major increase in petrol prices and pushed up transport and living costs.
Yilwatda said Nigerians should look beyond the possible short-term reduction in petrol prices and consider the effect of the subsidy on government revenue and spending.
“Subsidy may appear attractive because it promises cheaper petrol, but Nigerians must also ask the bigger question: who pays for the subsidy and what happens to the resources that government must divert to finance it?” he said.
“A policy cannot be judged only by its immediate benefit at the pump. We must examine its impact on government revenues, salaries, pensions, education, healthcare, infrastructure and the overall capacity of government to meet its obligations to citizens.”
The APC chairman said the removal of the subsidy had increased Federal Government allocations to states and helped improve the finances of many state governments.
He said some states had previously struggled to pay salaries and pensions, while others could only make partial payments.
Yilwatda said any plan to bring back the subsidy should therefore be carefully examined to prevent Nigeria from returning to the financial difficulties associated with the previous system.
He also linked the subsidy debate to the new minimum wage, saying governments need stronger revenue to continue paying higher wages while also meeting other responsibilities.
“The challenge is not merely to announce higher wages but to create an economic environment in which governments can consistently pay them without sacrificing investment in infrastructure, education, healthcare and other essential services,” he said.
Yilwatda also warned that bringing back the subsidy could affect funding for education.
He recalled the long disruptions in Nigerian universities under the previous administration and urged Nigerians to be cautious about policies that could reduce the government’s ability to fund education and other important sectors.
Atiku’s subsidy plan could revive fuel queues, weaken wage payments — Yilwatda