The National Chairman of the All Progressives Congress, Professor Nentawe Yilwatda, has warned that former Vice President Atiku Abubakar’s proposal to restore fuel subsidy could reverse Nigeria’s recent economic gains.
Yilwatda said the policy could also put pressure on workers’ salaries, education, infrastructure and the finances of state governments. The APC chairman spoke in a statement issued on Sunday by his Special Adviser on Media and Information Strategy, Abimbola Tooki. His reaction followed Atiku’s recent promise to restore the fuel subsidy if elected president in 2027.
Atiku, the presidential candidate of the African Democratic Congress, said the move would help cushion the effect of subsidy removal on Nigerians. He had also promised during the 2023 election campaign to remove the subsidy if elected.
Yilwatda warns against subsidy return
Yilwatda said the proposal could return Nigeria to the financial pressures associated with the old subsidy regime. He argued that cheaper petrol at the pump should not be the only measure used to assess the policy. According to him, the government must also consider how subsidy payments would affect its ability to fund other areas of the economy.
“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?”
The APC chairman said a return to subsidy could affect government revenues and its ability to pay salaries and pensions. He added that education, healthcare and infrastructure could also suffer if more public funds were directed towards subsidising petrol. Yilwatda further recalled the financial difficulties faced by some state governments before the removal of the subsidy. He said some states struggled to pay workers’ salaries and pensions, while others resorted to partial payments.
According to him, higher federal allocations after the subsidy removal have helped improve the finances of states. He therefore urged Nigerians to consider the wider effect of reversing the policy.
APC chairman links subsidy to education
Yilwatda also raised concerns about the possible impact of subsidy payments on education funding. He recalled the prolonged disruption of academic activities in Nigerian universities under the previous administration. In his view, governments need enough resources to maintain funding for education and other essential services.
“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.”
The APC chairman also linked the subsidy debate to the new minimum wage. He said governments must have enough revenue to sustain higher workers’ salaries without neglecting infrastructure, healthcare and education.
Yilwatda highlights digital payment reforms
Beyond salaries and public services, Yilwatda said the government’s reforms were improving Nigeria’s digital payment system. He noted that more Nigerians can now receive and make international payments through the financial system. According to him, the development is creating opportunities for young people, freelancers, software developers and content creators.
“Our young people are no longer limited by geographical boundaries. A Nigerian content creator, software developer, consultant or freelancer can provide services to clients anywhere in the world.”
He said such opportunities require a financial system that can support Nigerians participating in the global digital economy. Therefore, he urged caution over policies that could weaken the progress made in the sector.
APC backs education loan scheme
Yilwatda also highlighted the Nigeria Education Loan Fund as another government intervention. He described the scheme as important to expanding access to tertiary education financing. According to him, the programme has helped reduce the immediate financial pressure on some families.
The APC chairman said sustainable education funding remains necessary to prevent young Nigerians from abandoning their studies because their families cannot afford the cost.
Yilwatda acknowledges hardship from subsidy removal
However, Yilwatda acknowledged the hardship Nigerians have experienced since the removal of the petrol subsidy. He said the government must continue introducing measures to cushion the impact on vulnerable Nigerians. At the same time, he argued that returning to the old subsidy system would not provide a sustainable solution.
“The hardship Nigerians have experienced is real, and government must continue to respond to it. But the answer cannot simply be to return to a system whose long-term fiscal implications created serious distortions in our economy.”
He said Nigerians should instead demand an economy that can fund good wages, education, healthcare, infrastructure and social protection without depending on an expensive subsidy system. Yilwatda therefore urged Nigerians to examine the cost of any proposal to restore the subsidy and ask how the government would finance it.
“Whenever anybody proposes a return to subsidy, Nigerians should ask: how much will it cost? Where will the money come from? What programmes will be sacrificed to finance it? And for how long can the government sustain it?”
