Peter Obi, Sowore Reject Atiku’s Plan to Restore Petrol Subsidy Ahead of 2027 Election

Former Labour Party presidential candidate Peter Obi and activist and presidential candidate Omoyele Sowore have rejected the proposal by former Vice President Atiku Abubakar to introduce a new petrol affordability scheme if he is elected president in the 2027 presidential election.

The disagreement has added a fresh dimension to the continuing debate over Nigeria’s petrol subsidy policy, which has remained one of the most controversial economic issues in the country since President Bola Ahmed Tinubu announced the removal of the subsidy in 2023.

While Atiku has argued that Nigerians need relief from the high cost of petrol and the wider economic hardship associated with rising transportation and living costs, Obi and Sowore have questioned whether bringing back a subsidy arrangement is the appropriate way to address the problem.

The debate is also coming at a time when political parties and presidential hopefuls are already presenting different economic ideas ahead of the 2027 election.

Peter Obi Says Subsidy Removal Was Necessary

Peter Obi said that although many Nigerians have not yet seen the benefits they expected from the savings generated after the removal of the petrol subsidy, he still believes that removing the subsidy was the right decision.

According to Obi, the major problem is not necessarily the removal of the subsidy itself but how successive governments have managed the resources that became available after the policy was scrapped.

He argued that the government should have put stronger measures in place to reduce the hardship experienced by Nigerians following the removal of the subsidy.

Obi said the savings generated from the policy should have been directed toward critical sectors of the economy and projects capable of improving the lives of ordinary Nigerians.

In his view, returning to the old subsidy system would not solve the underlying economic challenges facing the country.

Obi: Government Should Have Planned the Subsidy Removal Better

Obi recalled that during his presidential campaign in 2023, he had maintained that if petrol subsidy had to be removed, the process should be properly planned and implemented.

He said the government needed to establish clear measures that would protect Nigerians from the immediate consequences of the policy.

According to him, removing subsidy without adequate preparations could place a heavy burden on households because petrol prices affect almost every aspect of economic activity.

Transportation costs, food distribution, production expenses and the prices of goods and services are all influenced by changes in the cost of petroleum products.

Obi therefore argued that the savings from subsidy removal should have been accompanied by visible investments in areas such as infrastructure, transportation, energy and other productive sectors.

He maintained that the objective should not simply be to remove government spending on subsidy but to ensure that Nigerians ultimately benefit from the economic resources released by the policy.

Sowore Also Rejects Return to Old Subsidy System

Omoyele Sowore also rejected the idea of returning Nigeria to the former petrol subsidy arrangement.

However, Sowore approached the issue from a different perspective, questioning who has actually benefited from the changes that followed the removal of subsidy.

He argued that the discussion should not stop at whether subsidy should be removed or restored.

According to Sowore, Nigerians should also be asking a more fundamental question: who is actually benefiting from the current system?

Sowore said Nigerian governments had for years promised to remove petrol subsidy, yet many of the problems associated with the petroleum sector had remained unresolved.

He also pointed to the growing hardship being experienced by ordinary Nigerians, particularly poorer households that have been affected by rising transportation costs and the general increase in the cost of living.

For many Nigerians, petrol prices have a direct impact on their daily lives because transportation costs influence the prices of food and other essential commodities.

Atiku Says His Proposal Is Not the Old Subsidy

The controversy began after Atiku Abubakar presented a proposal aimed at making petrol more affordable for Nigerians.

However, Atiku's campaign has insisted that the proposal should not be interpreted as a plan to return to the old petrol subsidy system.

His spokesperson, Kenneth Okonkwo, explained that the proposal, known as the Atiku Fuel Affordability Plan, is based on using Nigeria's domestic refineries and ensuring that crude oil is supplied to them at an appropriate price.

According to Okonkwo, the objective is to reduce the cost of producing refined petroleum products domestically and ultimately make petrol more affordable for Nigerians.

The proposal therefore differs, according to Atiku's team, from the previous subsidy arrangement in which the government was responsible for covering part of the difference between the market price of petrol and the regulated price paid by consumers.

What Atiku’s Fuel Affordability Plan Seeks to Achieve

The argument behind Atiku's proposal is that Nigeria should make better use of its domestic refining capacity.

Rather than relying heavily on imported refined petroleum products, the plan seeks to encourage domestic refining and ensure that local refineries have access to crude oil under conditions that can help reduce production costs.

If implemented effectively, Atiku's team believes such a system could reduce the price Nigerians pay for petrol without simply returning to the former subsidy structure.

The proposal has therefore opened a wider debate about whether Nigeria's long-term solution to petrol affordability should come through direct government subsidy or through increased domestic refining and other measures capable of lowering production costs.

The Bigger Question of Petrol Prices

The disagreement between Atiku, Obi and Sowore reflects a much wider debate over the future of Nigeria's petroleum sector.

For many Nigerians, the central issue is not necessarily the technical definition of subsidy but the amount they have to pay for petrol and how that cost affects their everyday lives.

Since the removal of the subsidy, petrol prices have risen substantially, contributing to increased transportation costs and putting additional pressure on households and businesses.

Supporters of subsidy removal argue that the old system was too expensive for the government and created opportunities for corruption and abuse.

Critics, however, argue that the government should have done more to protect citizens from the consequences of the policy and ensure that the savings generated were translated into meaningful improvements in people's lives.

2027 Election Could Intensify the Subsidy Debate

With the 2027 general election approaching, the issue of petrol affordability is expected to remain an important part of Nigeria's political debate.

Different political figures are likely to present competing approaches to the problem, particularly as the cost of living remains a major concern for households across the country.

Atiku's proposal provides one possible approach, focusing on domestic refining and lower production costs.

Obi, on the other hand, maintains that subsidy removal was necessary but that the government has not adequately managed the resources and economic opportunities created by the policy.

Sowore has also questioned the structure of the current system and called attention to the question of who benefits from it.

The Question of What Happened to Subsidy Savings

At the centre of the disagreement is another important question: what has happened to the money that the government says became available after the removal of the petrol subsidy?

The federal government has repeatedly pointed to increased allocations to the states and local governments following the removal of the subsidy as one of the benefits of the policy.

However, critics argue that increased government revenue and allocations should not be considered the only measure of success.

They say the real test should be whether ordinary Nigerians are experiencing improvements in their standard of living, access to affordable transportation, food prices, employment opportunities and other basic economic conditions.

This is likely to remain one of the major arguments as politicians prepare their economic messages ahead of the 2027 election.

A Debate That Is Far From Over

The disagreement between Atiku, Peter Obi and Omoyele Sowore shows that the petrol subsidy question remains unresolved in Nigeria's political and economic discussions.

While Atiku's camp insists that its proposal is not a return to the old subsidy system, Obi believes the removal of subsidy itself was necessary and that the focus should be on how the resulting resources are managed.

Sowore, meanwhile, has challenged Nigerians to look beyond the argument over subsidy removal and ask who is benefiting from the current arrangement.

As the country moves closer to 2027, the debate is likely to become even more intense.

For Nigerians struggling with high transportation costs, expensive food and rising household expenses, however, the most important question may remain simple: what economic policy can actually make life more affordable while ensuring that Nigeria's petroleum sector becomes more efficient and sustainable?

The answer to that question is expected to feature prominently in the political campaigns and economic promises of presidential candidates as the 2027 election draws closer.