The National Chairman of the All Progressives Congress, Nentawe Yilwatda, has warned that former Vice President Atiku Abubakar’s proposal to restore fuel subsidy could put pressure on government finances and undermine funding for workers’ salaries, education, healthcare and infrastructure.
Yilwatda said the subsidy debate should not be viewed only from the perspective of cheaper petrol, arguing that Nigerians must also consider how the policy would be financed and its long-term impact on government revenue.
“The former Vice President, Atiku Abubakar’s proposal to restore fuel subsidy raises fundamental questions about how such a policy would be financed and sustained without returning Nigeria to the cycle of fiscal pressures that characterised the previous arrangement,” Yilwatda said.
The APC chairman was reacting to Atiku’s recent pledge to reinstate fuel subsidy if elected President in 2027, a proposal the former Vice President said would help cushion the impact of subsidy removal on Nigerians.
Atiku’s position has generated debate ahead of the 2027 presidential election, with supporters arguing that subsidy could reduce pressure on households, while the APC has maintained that returning to the previous system would reverse economic reforms.
Yilwatda argued that the financial implications of subsidy would extend beyond the pump price of petrol, warning that government resources diverted towards subsidising fuel could reduce the funds available for other sectors.
“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.
He further warned that a return to the old subsidy regime could affect the ability of federal and state governments to sustain improved workers’ wages and meet their obligations to citizens.
According to him, states previously faced difficulties paying salaries and pensions, while increased federal allocations following the removal of subsidy have improved their financial position.
The APC chairman also raised concerns about the possible impact on education, healthcare and infrastructure, arguing that reduced government revenue could affect the financing of essential public services.
“The hardship Nigerians have experienced is real, and government must continue to respond to it. But the answer cannot simply be to return to a system whose long-term fiscal implications created serious distortions in our economy,” Yilwatda said.
He acknowledged the hardship caused by the removal of fuel subsidy but called for measures that would provide relief to vulnerable Nigerians without returning the country to what he described as an expensive and opaque subsidy system.
