Otti Backs Fuel Subsidy Removal, Says Return Advocates Don’t Mean Well

Abia State Governor, Alex Otti, has thrown his weight behind the removal of fuel subsidy, saying those advocating its return do not mean well for Nigeria.

Otti stated this in an exclusive interview aired on Arise Television on Friday while speaking on the economic impact of subsidy removal and his position on the policy.

The governor said he had consistently opposed the subsidisation of fuel consumption, arguing that government resources should instead be channelled towards supporting production.

“I don’t have a problem supporting production, but consumption should not be subsidised,” Otti said.

He recalled that he had advocated the removal of fuel subsidy in 2020, during the COVID-19 pandemic, when global demand for crude oil declined significantly.

According to him, the prevailing conditions in the international oil market at the time presented Nigeria with an opportunity to end the subsidy regime.

Otti also argued that subsidising fuel consumption encouraged waste because consumers were not bearing the full cost of the product.

“You know, as election approaches, people will be making all sorts of arguments, but removing the subsidy was the right thing to be done.

“And I don’t think anybody who is praying that subsidy returns means well for the country,” he said.

The governor further described the subsidy regime as susceptible to abuse, calling it a “scam”.

He explained that when fuel consumption was subsidised, motorists had little incentive to reduce their usage because they were not paying the full cost.

“So if you are being subsidised, you can just blast all vehicles, maybe 20 vehicles, you put all of them on the road because somebody is paying for it,” he said.

Otti, however, acknowledged that the removal of subsidy would initially create hardship for Nigerians, but maintained that the policy was necessary.

“There will be the pain initially,” he said.