BREAKING: Obi backs subsidy removal, says mismanagement of proceeds not enough to bring it back

Former Anambra State Governor and 2023 presidential candidate, Peter Obi, has reiterated his support for the removal of Nigeria’s petrol subsidy, arguing that the mismanagement of funds saved from the policy should not be used as a reason to restore it.

Obi made the position known on Monday, August 24, 2026, while speaking at a conference organised by the Nigerian Bar Association (NBA) in Port Harcourt, Rivers State.

According to him, the fundamental issue is not whether the subsidy should be reinstated, but whether the resources freed by its removal are being properly managed and deployed for the benefit of Nigerians.

Obi has consistently opposed the continuation of petrol subsidies. In 2023, he said he had supported their removal since his time on the Economic Management Team under former President Goodluck Jonathan, describing the subsidy regime as susceptible to widespread abuse and corruption.

His latest position comes amid renewed debate over the economic consequences of subsidy removal and growing calls from some political opponents of the Tinubu administration for the policy to be reversed.

Former Vice-President Atiku Abubakar, for instance, recently said he would restore the petrol subsidy if elected president in 2027, arguing that Nigerians had yet to see sufficient benefits from the savings generated by its removal.

Obi, however, appears to be drawing a distinction between the policy itself and the way government has handled its proceeds.

He has previously criticised the Tinubu administration’s implementation of subsidy removal, saying he supported the reform in principle but objected to what he described as its haphazard execution.

The debate remains central to Nigeria’s economic and political discourse as the country continues to grapple with higher petrol prices, transportation costs and the broader cost-of-living crisis following the end of the subsidy regime.

Obi’s latest comments therefore suggest that his position is not to return Nigeria to the old subsidy system, but to demand greater transparency, accountability and productive use of the resources released by its removal.

The development is likely to feature prominently in the emerging economic debate ahead of the 2027 presidential election, particularly as political parties and candidates present competing approaches to addressing Nigeria’s cost-of-living crisis.