Atiku’s subsidy proposal will reverse economic gains – APC chairman

The National Chairman of the All Progressives Congress, Professor Nentawe Yilwatda, has warned that former Vice President Atiku Abubakar’s proposal to return Nigeria to the old fuel subsidy regime could reverse the economic gains recorded under the ongoing reforms, with negative consequences for workers’ wages, education, infrastructure and the fiscal stability of states.

The APC National Chairman, in a statement issued by his Special Adviser on Media and Information Strategy, Abimbola Tooki, on Sunday, said the former Vice President’s proposal to reinstate fuel subsidy would return Nigerians to fuel queues, threaten the payment of the current minimum wage and lead to the cancellation of education grants for Nigerian students, among other negative consequences for the masses.

Recall that on May 29, 2023, President Bola Tinubu, during his inauguration, declared that fuel subsidy was gone, in line with his campaign promise. Although the removal triggered an increase in the prices of goods and services, the APC-led Federal Government has consistently maintained that the policy has yielded significant economic gains for the country.

Ahead of the 2027 election, the former Vice President, who also promised in 2023 to end fuel subsidy if elected, last week pledged to reinstate the subsidy if elected in the January Presidential election to cushion the effect of its removal on Nigerians.

Atiku’s promise has generated mixed reactions among Nigerians.

Reacting, Yilwatda, while receiving a delegation of economic stakeholders in Abuja, warned that the subsidy debate should go beyond political rhetoric and consider the fiscal burden and wider consequences for states, workers, education and infrastructure.

APC National Chairman stated, “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.

“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? 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.”

Yilwatda said many states previously struggled to pay workers’ salaries and pensions, with some resorting to partial payments.

He said increased federal allocations following subsidy removal had improved states’ finances, urging caution against reintroducing subsidy and returning to past fiscal pressures.

The statement added, “The APC chairman also drew attention to the education sector, recalling the prolonged disruption of academic activities in Nigerian universities under the previous administration. Nigerians should be concerned about policies that could weaken the capacity of governments to finance education and other essential public services.

“A return to a fiscally unsustainable subsidy regime could have consequences far beyond the price of petrol. When government revenue is squeezed, the first victims are often the critical sectors that directly affect the welfare and future of our people.”

On the new minimum wage, Yilwatda said the sustainability of improved workers’ salaries must be considered in the subsidy debate, stressing that governments must have the capacity to meet their recurrent obligations. He said higher wages should not come at the expense of funding infrastructure, education, healthcare and other essential services.

The APC chairman also said the ongoing reforms were improving Nigeria’s digital payment system, allowing more Nigerians, particularly young people, freelancers and content creators, to make and receive international payments.

He continued, “Our young people are no longer limited by geographical boundaries. A Nigerian content creator, software developer, consultant or freelancer can provide services to clients anywhere in the world. But that opportunity requires a financial and payment system capable of supporting the global digital economy.

“We must therefore be careful about policies that could undermine the progress being made in strengthening Nigeria’s financial and digital ecosystem. The APC National Chairman also highlighted the Nigeria Education Loan Fund, describing it as an important intervention that has expanded access to tertiary education financing and reduced the immediate financial burden on many families.

“He said sustainable financing for education was critical to ensuring that young Nigerians are not forced to abandon their studies because their parents cannot afford tuition and other educational expenses.”

Professor Yilwatda said the subsidy debate should focus on building a strong and sustainable economy rather than relying on costly government interventions.

He acknowledged the hardship caused by subsidy removal, stressing the need for stronger measures to cushion its impact on vulnerable Nigerians.

The statement continued, “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.

“What Nigerians deserve is an economy that can sustainably finance good wages, quality education, healthcare, infrastructure and social protection without depending on an opaque and expensive subsidy system. Whenever anybody proposes a return to subsidy, Nigerians should ask: how much will it cost?

“Where will the money come from? What programmes will be sacrificed to finance it? And for how long can the government sustain it? These are legitimate questions that must be answered before the country embarks on another expensive policy experiment.”(Punch)