Ayo Arise Rejects Atiku’s Fuel Subsidy Return Plan, Says Policy Could Reverse Nigeria’s Gains

Former Ekiti North Senator, Ayo Arise, has rejected calls to restore Nigeria’s former fuel subsidy regime, warning that such a move could reverse some of the financial gains governments have recorded since the subsidy was removed.

Arise, an All Progressives Congress (APC) chieftain, spoke after former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, pledged to restore fuel subsidy if elected president in 2027.

The former lawmaker argued that although subsidy removal has increased economic pressure on Nigerians, the policy has also strengthened the financial position of the Federal Government and state governments. He said the additional revenue has helped governments meet key obligations and fund development programmes.

Arise maintained that the impact of subsidy removal should not be judged only by the immediate rise in living costs. He said one major benefit has been the improved ability of governments to pay workers’ salaries without repeatedly depending on loans or financial assistance from the Federal Government.

He explained that regular salary payments also support economic activity because workers with purchasing power can pay school fees, meet household needs and spend money on goods and services. According to him, these wider economic effects are often overlooked when discussing the subsidy policy.

The APC chieftain also pointed to increased funding for education through the Nigeria Education Loan Fund (NELFund), arguing that resources made available after subsidy removal could be redirected to critical sectors. He questioned why Nigeria should return to a system he described as vulnerable to mismanagement, corruption and diversion of public funds.

Arise further criticised the former subsidy system, alleging that some individuals previously claimed payments for petroleum products that were not actually imported into Nigeria. He argued that returning to the old regime could recreate the financial leakages associated with the system.

“I would imagine that the former VP’s advisors have not done him any favour,” Arise said, arguing that the broader effects of subsidy removal should be considered before advocating a return to the previous arrangement.

He urged policymakers to assess both the benefits and challenges of subsidy removal rather than focusing solely on the hardship caused by higher fuel prices. The debate is expected to remain a major issue ahead of the 2027 presidential election, with political parties offering competing proposals on how to address the cost of living and Nigeria’s energy challenges.