The debate over Nigeria’s controversial petrol subsidy has taken a fresh political turn ahead of the 2027 presidential election, with Peter Obi rejecting Atiku Abubakar’s proposal to restore the subsidy if elected president.
Speaking at the Nigerian Bar Association (NBA) conference in Port Harcourt, Rivers State, Obi argued that Nigeria should not reverse subsidy removal simply because the government has allegedly failed to properly manage the resources generated by the policy.
His position places him at odds with Atiku on one of the most politically sensitive economic issues Nigerians are likely to consider before the 2027 election.
Obi: Removing subsidy was necessary, but the money must benefit Nigerians
Obi, presidential candidate of the Nigeria Democratic Congress (NDC), maintained that the fundamental problem was not the decision to remove the subsidy but what happened after its removal.
According to him, the savings generated by ending the subsidy should have been redirected into productive sectors capable of reducing the burden on ordinary Nigerians.
He argued that government should have simultaneously provided alternatives and social protection measures to cushion the immediate effects of higher petrol prices.
Obi said his position was not new, pointing to his 2023 campaign manifesto, where he had advocated a structured approach to subsidy removal and the productive use of the resources recovered.
The former Anambra State governor also accused the government of mismanaging and stealing resources associated with the policy.
His argument effectively draws a distinction between subsidy removal as an economic reform and the management of the money released by that reform.
Atiku wants subsidy restored if elected in 2027
Obi’s comments came after Atiku Abubakar, the African Democratic Congress (ADC) presidential candidate, indicated that he would restore petrol subsidy if Nigerians elect him president in 2027.
The position represents a significant political contrast.
Atiku had supported the removal of subsidy during the 2023 presidential election campaign. He is now arguing that the policy, as implemented by the Tinubu administration, has failed to deliver sufficient benefits to Nigerians.
The disagreement therefore goes beyond the question of petrol prices. It raises a larger question about whether Nigeria should continue with the post-2023 economic reform path or introduce a different approach under a new administration.
How the subsidy controversy began
President Bola Ahmed Tinubu announced the end of the petrol subsidy during his May 29, 2023 inauguration speech.
In the address, Tinubu argued that the subsidy had become increasingly costly and that government resources should instead be redirected towards infrastructure, education, healthcare and employment.
The announcement was followed by a sharp increase in petrol prices and a wider rise in the cost of transportation, food and other goods and services.
The Federal Government has continued to defend the reform as necessary to reduce fiscal pressure and make more public resources available for development. In a subsequent national broadcast, Tinubu acknowledged the hardship created by the decision while maintaining that the reform was necessary to free resources for collective use.
Three years later, however, the subsidy question remains politically explosive.
The real disagreement may be about what happens to the savings
The latest exchange between Obi and Atiku exposes two different approaches to the same economic problem.
Atiku’s argument is essentially that Nigerians have borne the consequences of subsidy removal without receiving sufficient corresponding benefits.
Obi, on the other hand, says reversing the policy would address the wrong problem. In his view, the priority should be ensuring that resources freed by subsidy removal are properly accounted for and invested in areas that improve living standards.
That distinction could become increasingly important as the 2027 campaign gathers momentum.
For Nigerians, the practical question is not simply whether petrol should be subsidised. It is also who ultimately benefits from the government’s fiscal decisions, how the savings are accounted for and whether those resources translate into better public services and economic opportunities.
Recent government figures reported in connection with the subsidy debate have put the resources mobilised since the reform at trillions of naira, making the question of how such funds are managed a major political issue.
NBA conference turns into early 2027 policy showdown
The subsidy dispute was only one part of a wider political confrontation at the NBA conference in Port Harcourt.
Several opposition figures used the gathering to present competing solutions to Nigeria’s economic and security problems, giving voters an early glimpse into the policy arguments that could dominate the 2027 presidential campaign.
ADC vice-presidential candidate Rotimi Amaechi argued that economic recovery would depend heavily on job creation, local production and policies capable of putting more money into Nigerians’ pockets.
African Action Congress presidential candidate Omoyele Sowore took a more confrontational position, calling for a change of government and criticising the way fuel subsidy had historically been administered.
Social Democratic Party candidate Adewale Adebayo also called for major changes in the country’s security architecture, while former Cross River State governor Donald Duke placed leadership reform at the centre of Nigeria’s problems.
The different positions underline how opposition parties are beginning to distinguish themselves on the economy, security and governance as the next presidential election approaches.
State police debate adds another layer
Policing was another major issue at the Port Harcourt gathering.
President Tinubu’s Chief of Staff, Femi Gbajabiamila, defended the administration’s move towards state police, arguing that Nigeria’s highly centralised policing structure has significant limitations.
He also raised concerns about manpower, deployment and the need for stronger institutional safeguards.
One of the biggest objections to state police has been the possibility that governors could use local security structures against political opponents.
Gbajabiamila acknowledged the concern and argued that any new policing structure must contain safeguards against political abuse. He also maintained that officers should be protected when they refuse unlawful instructions.
Adewale Adebayo offered another model, advocating a three-tier policing structure involving federal, state and local governments.
The disagreement illustrates that the 2027 contest is likely to extend beyond personalities and political alliances into debates about how Nigeria itself should be governed.
Why Obi’s position matters
Obi’s position is politically significant because it separates him from both the Tinubu administration and Atiku on the subsidy question.
He supports the removal of subsidy but strongly criticises the way the reform has been implemented and how its financial consequences have been handled.
That gives him a distinct argument heading into 2027: retain the reform, but change the way government manages the proceeds and protects citizens from the consequences.
Whether that position resonates with voters will depend largely on the economic conditions Nigerians experience before the election.
For households struggling with transportation costs, food prices, electricity expenses and other rising living costs, the debate will ultimately be judged less by political speeches and more by whether any proposed policy can produce measurable improvements in daily life.
What Nigerians should watch next
The fuel subsidy debate is unlikely to disappear as the 2027 election approaches.
Voters should expect presidential candidates to provide clearer answers on at least four issues:
- Whether petrol subsidy should remain permanently removed or be restored in some form.
- How savings or additional government revenues will be accounted for.
- What measures will protect households from economic shocks.
- Whether Nigeria can build a policing system that improves security without creating new opportunities for political abuse.
The competing positions emerging from the NBA conference suggest that the 2027 presidential race is already developing into a contest over competing economic and governance philosophies.
For now, Obi and Atiku have drawn a clear line between them on fuel subsidy. Obi believes Nigeria should keep the reform and fix the management of its proceeds. Atiku has proposed bringing the subsidy back if he wins the presidency.
The Nigerian electorate will ultimately decide which approach offers the more convincing answer to the country’s economic difficulties.
Sources and references
- President Bola Ahmed Tinubu’s May 29, 2023 inaugural address, including the government’s stated rationale for ending petrol subsidy.
- President Tinubu’s June 2023 Democracy Day broadcast, explaining the administration’s position on the subsidy reform.
- Current reporting on Peter Obi’s comments at the Nigerian Bar Association conference in Port Harcourt.
- Additional reporting on the competing positions of Obi and Atiku over petrol subsidy.
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