2027: Obi, Kwankwaso differ on fuel subsidy

The presidential and vice-presidential candidates of the Nigeria Democratic Congress, NDC, Peter Obi and Rabiu Kwankwaso, have expressed different positions on restoring fuel subsidy if elected in 2027.

Kwankwaso, a former Kano State governor, said on Tuesday that an Obi-led administration would reintroduce fuel subsidy in a modified form.

He made the statement during an interview with Arise TV. He discussed fuel pricing and the impact of subsidy removal under President Bola Tinubu.

“We are bringing subsidy in our own way,” Kwankwaso said.

He faulted the removal of the subsidy on May 29, 2023. He argued that the policy lacked adequate preparation and contributed to economic difficulties.

Kwankwaso said the government should support the expansion of private and public refineries. He said increased local production could help reduce the cost of petroleum products.

“If individuals in this country can build refineries, I see no reason why government under certain circumstances will not build refineries,” he said.

He added that the government should do “whatever it takes to put the price of oil down.”

However, Obi has maintained that Nigeria should not return to the old fuel subsidy regime.

Speaking at the Nigerian Bar Association conference in Port Harcourt in August, Obi said the government should have removed the subsidy in a structured and phased manner.

“I subscribe and maintain that you need to remove subsidy. Mismanagement of the proceeds shouldn’t be the reason for not removing it,” he said.

The former Anambra State governor said the government should invest savings from subsidy removal in critical sectors. He listed healthcare, education and agriculture among the areas that should benefit.

Obi also criticised the handling of the subsidy savings. He said the government should transparently channel the funds into productive investments to cushion the policy’s impact on Nigerians.

The differing positions highlight the two politicians’ approaches to fuel pricing ahead of the 2027 election.

Obi supports keeping the subsidy removal policy and investing the savings in public services. Kwankwaso, meanwhile, supports government intervention to reduce fuel prices, including a modified subsidy arrangement and increased domestic refining.