The NDC presidential candidate says mismanagement of subsidy savings should not justify reversing the policy and calls for greater investment in healthcare
Peter Obi, presidential candidate of the Nigeria Democratic Congress, on Monday, August 24, 2026, reaffirmed his support for petrol subsidy removal at the Nigerian Bar Association Annual General Conference in Port Harcourt, Rivers State, while criticising the Federal Government over its handling of the resources generated by the policy.
Also read: Peter Obi challenges Tinubu, others rivals to defend their records
Obi said the decision to remove the subsidy should not be reversed simply because the proceeds had allegedly been poorly managed, arguing instead that the savings should have been channelled into projects capable of easing the burden on Nigerians.
“I subscribe and maintain that you need to remove subsidy. Mismanagement of the proceeds shouldn’t be the reason for not removing it,” Obi said during the panel session.
The former Anambra State governor said the real failure was not the removal itself but the absence of meaningful alternatives for citizens after the policy took effect.
“What we should have done is that when we removed the subsidy, we would have given the people alternative usage for the subsidy,” he said.
Obi’s comments came as the subsidy debate has regained political prominence ahead of the 2027 presidential election, following former Vice-President Atiku Abubakar’s recent pledge to restore a targeted petrol subsidy if elected.
Atiku, the presidential candidate of the African Democratic Congress, has argued that President Bola Tinubu’s administration has failed to account adequately for the resources generated after the subsidy was removed.
Obi, however, has taken a different position, maintaining that restoring the subsidy would not address the underlying problem of how public resources are managed.
According to Obi, the Federal Government has said about N16 trillion was recovered following the policy.
Official figures cited by Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele put the resources mobilised from subsidy removal between June 2023 and December 2025 at N15.8 trillion.
Oyedele said the Federal Government received N5.4 trillion of that amount, while N10.4 trillion was shared among state and local governments. (TheCable)
Obi argued that a more disciplined approach to the funds could have produced visible improvements in the lives of ordinary Nigerians, particularly through investment in healthcare.
“The number one thing a nation needs to develop is health. But today, our health is very poor, our primary care is very poor,” he said. (The Sun Nigeria)
He suggested that five per cent of the reported N16 trillion would amount to about N800 billion, which he said could have supported the establishment of primary healthcare centres across the country’s wards.
Obi also pointed to kidney treatment as another area where the resources could have made a significant difference, citing the shortage of dialysis centres and machines in Nigeria.
Beyond direct spending, he proposed that the funds could have been saved through the country’s sovereign wealth fund to build a stronger financial buffer for future needs.
“If they had saved the money and decided to do like any other country, we would have had $10 billion added to our sovereign wealth fund,” Obi said. (Channels Television)
His argument reflects the position he said he had taken before the 2023 presidential election, when he campaigned on removing the subsidy in a more structured manner and directing the resulting savings towards productive investment.
“Go to my manifesto, I said it before, I said I will do it in an organised manner and whatever we recover would be invested appropriately,” he said. (Legit.ng – Nigeria news.)
The subsidy was removed by President Bola Tinubu on May 29, 2023, immediately after his inauguration, ending a long-running petrol pricing regime that had required substantial government expenditure.
The decision triggered a sharp increase in petrol prices and contributed to a wider cost-of-living crisis that has remained central to political debate.
The Federal Government has continued to defend the reform as necessary to reduce pressure on public finances and redirect resources towards development.
Critics, however, have questioned whether the savings have translated into sufficient relief for households facing higher transport, food and living costs.
Obi’s latest intervention therefore places him between two increasingly distinct political positions ahead of 2027.
While he supports retaining the subsidy removal, he is calling for much stronger accountability and more visible use of the resulting resources.
He also warned against asking Nigerians to endure hardship while public resources are allegedly being squandered.
“People in government have asked Nigerians to fast. Okay. They cannot be feasting when Nigerians are fasting,” Obi said. (The Sun Nigeria)
The remark captures the central argument behind Obi’s position: the difficult reform, in his view, can only command public confidence if Nigerians can see tangible benefits from the sacrifices being demanded of them.
Also read: Peter Obi launches 2027 campaign with ‘Nigeria must work’ pledge
With the 2027 campaign season now under way, the competing positions of Obi, Atiku and other presidential contenders are likely to keep the petrol subsidy debate firmly at the heart of discussions about Nigeria’s economic future.
Victory Emmanuel is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.
