Who Pays For It? APC Chairman Questions Atiku’s Fuel Subsidy Plan

The National Chairman of the All Progressives Congress (APC), Nentawe Yilwatda, has queried the plans by the African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to restore fuel subsidy if he wins the 2027 election.

Yilwatda said Atiku’s plan would bring back fuel queues and erode the gains of the minimum wage if implemented.

Naija News reports that the APC Chairman made the submission in Abuja when he received a delegation of economic stakeholders who visited him to discuss the state of the Nigerian economy, ongoing reforms and prospects for sustainable economic growth.

In defence of the fuel subsidy removal by President Bola Tinubu, Yilwatda urged Nigerians not to be deceived by the immediate reduction in petrol prices that fuel subsidy restoration might provide, but also its implications for government revenues and spending.

“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,” he said.

Further justifying his claim that fuel subsidy should not be restored, Yilwatda said federal allocations to states have increased following the removal of subsidy and some states which had previously struggled to pay salaries and pensions have had their stories turned around.

He argued that any decision to restore subsidy must therefore be subjected to rigorous economic scrutiny to avoid returning the country to its previous fiscal difficulties.

He also linked the subsidy debate to the payment of the new minimum wage, saying governments require stronger revenues to sustain higher wages alongside other obligations.

“The challenge is not merely to announce higher wages but to create an economic environment in which governments can consistently pay them without sacrificing investment in infrastructure, education, healthcare and other essential services,” he said.

Yilwatda pointed out that a return of fuel subsidy would have more far-reaching implications than the price of petrol, as it will directly affect the lives and future of citizens.

“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,” he said.