2027: Kwankwaso Says Obi Government Would Use New Subsidy Model to Cut Petrol Prices

Rabiu Kwankwaso, the vice-presidential candidate of the Nigeria Democratic Congress (NDC), says a government led by Peter Obi would introduce a new form of fuel subsidy and use increased domestic refining to reduce the cost of petrol for Nigerians.

The proposal places petrol pricing at the centre of the NDC’s economic message ahead of Nigeria’s 2027 presidential election, as households and businesses continue to contend with elevated energy and transportation costs.

Kwankwaso made the comments during an interview with Arise News, where he defended the NDC’s position on fuel pricing and criticised the way President Bola Ahmed Tinubu’s administration implemented the removal of petrol subsidy in 2023.

Kwankwaso: NDC would introduce subsidy through a different approach

Responding to questions about whether the NDC could campaign effectively in the North-West while supporting a policy that could involve subsidising petrol, Kwankwaso said the party would pursue what he described as its own form of subsidy.

Rather than describing a return to the previous subsidy system in exactly the same form, he pointed to government intervention in domestic petroleum production as part of the proposed strategy.

According to Kwankwaso, increasing the number and capacity of refineries in Nigeria could reduce dependence on imported petroleum products and help lower the price paid by consumers.

He argued that if private investors could establish refineries in Nigeria, the Federal Government could also consider building refineries where necessary to achieve what he described as the country’s minimum fuel requirement.

The former Kano State governor said the objective would ultimately be for Nigerians to purchase petrol at what he called a reasonable price.

He also said an NDC administration would pursue measures capable of reducing the price of petroleum products.

How the proposal differs from the old subsidy debate

Kwankwaso’s comments introduce an important distinction into the long-running debate over fuel subsidy.

The traditional subsidy arrangement involved the government absorbing part of the difference between the cost of supplying petrol and the price paid by consumers. The system became increasingly expensive for the Federal Government and was repeatedly criticised over its fiscal burden, transparency and the distribution of its benefits.

Tinubu announced the end of the petrol subsidy regime in his May 29, 2023 inauguration speech, arguing that the policy had become too costly and that public resources should instead be redirected towards infrastructure, education, healthcare and employment.

The President subsequently acknowledged that the reform would impose additional pressure on households while maintaining that the policy was necessary to address the country’s fiscal challenges.

Kwankwaso now argues that the NDC could achieve a lower pump price through a different combination of government intervention and increased domestic refining.

That means the key question surrounding the proposal is not simply whether subsidy would return, but what mechanism would be used, how it would be funded and how the government would prevent the new arrangement from recreating the problems associated with the previous system.

Kwankwaso criticises the timing of subsidy removal

Kwankwaso also took issue with the manner in which the Tinubu administration implemented the reform.

He argued that the decision was made immediately after Tinubu assumed office without sufficiently addressing the economic consequences that would follow.

The criticism comes despite the fact that subsidy removal had featured in the economic debate before the 2023 election. Kwankwaso’s argument is that the manner and timing of implementation created additional pressure without adequate measures being put in place to cushion the impact.

The Tinubu administration has maintained the opposite position: that continuing the subsidy was financially unsustainable and that the resources previously committed to it could be redirected towards other areas of the economy.

Why domestic refining is central to the proposal

Domestic refining is particularly significant to the NDC’s proposed approach because Nigeria’s ability to produce petroleum products locally affects the country’s exposure to international crude and refined-product markets.

Nigeria has expanded its domestic refining capacity in recent years, most notably with the Dangote refinery, while other refineries have also been undergoing rehabilitation or development.

However, greater refining capacity does not automatically guarantee cheap petrol. The price of crude oil, exchange rates, operating costs, logistics, taxes and other components of the petroleum value chain can continue to influence pump prices.

That issue has become increasingly important in 2026. Reuters reported in September that rising global oil prices had pushed petrol prices sharply higher in Nigeria, even as the Dangote refinery was operating at substantial capacity.

This means that the NDC’s proposal would face a broader policy challenge: determining how domestic production would translate into consistently lower prices for consumers rather than simply increasing the volume of locally refined petroleum.

Fuel prices become a major 2027 election issue

The timing of Kwankwaso’s comments is significant.

The 2027 presidential election is scheduled as part of the next federal electoral cycle, with INEC’s current published election information showing January 16, 2027 for the presidential and National Assembly elections.

With the cost of petrol affecting transportation, food distribution, electricity generation and business operations, fuel pricing is likely to remain an important economic issue during the campaign.

For the NDC, Kwankwaso’s comments provide a clearer indication of how the Obi-Kwankwaso ticket intends to approach one of the most politically sensitive reforms introduced under the current administration.

However, the remarks do not yet amount to a detailed subsidy policy. Kwankwaso has explained the broad direction—government intervention, increased refining and lower petrol prices—but specific details such as the financing mechanism, eligibility, duration, pricing formula and safeguards against abuse have not been fully outlined in the comments reported.

What Nigerians should watch next

The next stage of the debate is likely to focus on the practical details of the NDC proposal.

Among the issues that would require clarification are:

• How the proposed subsidy or price-support mechanism would be funded.
• Whether government-owned refineries would be constructed or existing facilities expanded.
• How domestic crude supply would be priced for Nigerian refineries.
• Whether consumers would receive a direct price reduction or whether government would subsidise part of the production cost.
• How the policy would avoid the accumulation of large subsidy arrears.
• What measures would be introduced to prevent smuggling, diversion and other forms of leakage.
• How the proposed system would respond when international crude prices or exchange rates rise sharply.

These details will matter because the central policy question is not only whether petrol should become cheaper, but whether any price-reduction mechanism can remain financially sustainable for the government.

For now, Kwankwaso’s statement establishes the NDC’s stated intention to pursue a different form of fuel subsidy and stronger government involvement in domestic refining if the party forms the Federal Government after the 2027 election.

The proposal is therefore likely to remain part of the wider political and economic debate over whether Nigeria should prioritise market-based petrol pricing, government-supported affordability, or a combination of both.