“Don’t bring back fuel subsidy” — FG, APC hit Atiku

The Federal Government and the All Progressives Congress have rejected former Vice-President and African Democratic Congress presidential candidate Atiku Abubakar’s proposal to restore petrol subsidy if elected president in 2027, arguing that reversing the policy would recreate the fiscal pressures and economic distortions that prompted its removal.

Mr Atiku said he would restore petrol subsidy if elected president in 2027, arguing that Nigerians had yet to see sufficient benefits from the savings generated since the policy was removed.

He also demanded greater accountability over the funds saved from subsidy removal, saying the resources should have been used to reduce poverty, improve education and security, and create opportunities for young Nigerians.

However, Mr Atiku’s proposal differs from the pre-May 2023 subsidy arrangement. His Economic Recovery Plan 2027 proposes a targeted, capped and transparently budgeted production subsidy, rather than an opaque import-based subsidy.

Under the proposal, qualifying Nigerian refineries would receive crude oil at preferential prices under strict conditions, with the aim of reducing petrol prices while encouraging domestic refining.

FG defends subsidy removal

President Bola Tinubu announced the removal of petrol subsidy during his inaugural address on 29 May 2023, declaring that the system had become unsustainable.

The Federal Government has repeatedly defended the decision, maintaining that subsidy payments placed an excessive burden on public finances and that removing them created additional fiscal space for governments.

Minister of Information and National Orientation, Mohammed Idris, argued that the policy had released significant resources for distribution among the Federal Government, states and local governments.

According to figures presented under the Federal Government’s Reform Scorecard, subsidy savings mobilised N15.8tn for the federation between June 2023 and December 2025.

Mr Idris said about N5.43tn accrued to the Federal Government, while states received approximately N6.52tn and local governments N3.88tn.

He clarified, however, that the N15.8tn was not money sitting in a separate government account but resources released into the broader fiscal system and made available to the three tiers of government.

APC rejects return to subsidy regime

The APC National Chairman, Professor Nentawe Yilwatda, also criticised the proposal, warning against returning to a system the ruling party considers financially unsustainable.

The party’s position is that restoring the subsidy would reverse economic reforms undertaken by the Tinubu administration and potentially recreate the fiscal pressures associated with the previous regime.

The renewed dispute has consequently placed petrol pricing and the management of subsidy savings at the centre of the emerging 2027 political debate.

The people-centred question

For Nigerians, the disagreement goes beyond whether subsidy should return. The bigger question is whether the benefits of its removal are actually reaching households struggling with food, transport, housing and other living costs.

Mr Atiku is arguing for a targeted mechanism designed to lower petrol prices and support domestic refining, while the Federal Government and APC maintain that the country should not return to the previous subsidy model.

As the 2027 election approaches, the debate is likely to remain focused on how the government can balance fiscal sustainability with the immediate cost-of-living pressures facing ordinary Nigerians.