2027: Obi Disagrees With Atiku on Fuel Subsidy, Faults Mismanagement of Proceeds

Former Anambra State Governor and 2027 presidential candidate Peter Obi has disagreed with former Vice President Atiku Abubakar over the future of Nigeria’s fuel subsidy, arguing that subsidy removal should not be reversed simply because the proceeds have allegedly been poorly managed.

Obi made his position known on Monday, August 24, 2026, during the Nigerian Bar Association’s conference in Port Harcourt, Rivers State, where he addressed the growing political debate over fuel subsidy ahead of the 2027 presidential election.

Obi backs subsidy removal

Atiku, the presidential candidate of the African Democratic Congress (ADC), recently said he would restore a form of fuel subsidy if elected president in 2027, arguing that Nigerians had not benefited sufficiently from the savings generated after the policy was removed.

Obi, however, took a different position.

The former Anambra governor maintained that removing the subsidy was necessary, but insisted that government should have properly managed and invested the resources saved from the policy.

“Mismanagement of the proceeds should not be the reason for not removing it,” Obi said.

According to him, the real problem is not necessarily subsidy removal itself, but what government does with the resources generated from the policy.

‘The money should have been invested properly’

Obi argued that Nigerians should have been provided with effective alternatives to reduce the hardship caused by higher fuel prices following subsidy removal.

He said the resources recovered should have been directed towards critical sectors capable of improving citizens' living standards.

Among the areas he highlighted were healthcare and other productive sectors of the economy.

Obi also alleged that the resources generated since subsidy removal have been “mismanaged and stolen”, raising questions about transparency and accountability in the management of the funds.

Obi references his 2023 manifesto

Defending his position, Obi said he had already outlined his approach to fuel subsidy during the 2023 presidential election.

He maintained that his proposal was to remove the subsidy in an organised manner while ensuring that whatever resources were recovered would be appropriately invested.

The former governor therefore suggested that the debate should focus less on returning to the old subsidy regime and more on ensuring that savings from the policy are transparently deployed for the benefit of Nigerians.

Atiku takes a different position

Atiku's recent position has reignited one of Nigeria's most controversial economic debates.

The former vice president initially supported subsidy removal but has since argued that the policy, as implemented by the current administration, has failed to deliver sufficient benefits to Nigerians.

Atiku initially spoke of restoring the subsidy, although he subsequently clarified that his proposal would not simply recreate the old import-subsidy system. His newer proposal involves a targeted, capped and transparently budgeted production subsidy aimed at supporting domestic refining and lowering petrol prices.

This places Atiku and Obi at odds on an important economic issue as the 2027 presidential contest approaches.

How much has subsidy removal generated?

The amount generated or saved from subsidy removal has itself become a major political controversy.

Finance Minister Wale Edun previously stated that Nigeria received about N15.8 trillion in fuel subsidy savings between June 2023 and December 2025, while the government said N10.4 trillion was shared among states and local governments.

Other political groups have disputed the figures and demanded a more comprehensive account of the funds.

The disagreement over the figures further highlights the importance of Obi's call for better management and accountability.

A major issue ahead of 2027

Fuel prices and the cost of living are expected to remain major issues in Nigeria's 2027 presidential election.

While Atiku's proposal focuses on reducing petrol costs through a redesigned subsidy mechanism, Obi argues that Nigeria should maintain subsidy removal while ensuring that the resulting resources are invested productively.

The debate ultimately goes beyond the question of whether subsidy should exist. It raises a broader question about how Nigeria manages its public resources and whether ordinary citizens receive measurable benefits from government economic policies.

With the 2027 election approaching, Nigerians are likely to hear more competing proposals from presidential candidates seeking to address petrol prices, inflation, poverty and the country's wider economic challenges.

What do you think? Should Nigeria restore fuel subsidy, or should the government maintain subsidy removal and properly invest the savings?