2027: Fuel subsidy alone might not decide who runs Nigeria’s economy better – Sam Amadi

The Director of Abuja School of Social and Political Thoughts, Sam Amadi on Wednesday declared that the issue of fuel subsidy removal or restoration alone might not be the factor in deciding who can run Nigeria’s economy better.

Amadi, however, noted that fuel subsidy could prove to be an important issue in the 2027 general elections, unlike what was obtainable in 2023.

There have been debates over the removal of fuel subsidy by President Bola Tinubu, with the African Democratic Congress, ADC, presidential candidate, Atiku Abubakar, promising to restore the policy if elected president in 2027.

However, featuring on Arise Television’s Morning Show, Amadi said: “The subsidy issue didn’t register in the last election, but this election is promising to be a major issue.

“The economics of it is debatable. People argue that subsidy is inefficient, but we know that subsidy takes a different form, as some could be good tools that the government uses to drive economic development but, in Nigeria’s context, may be inefficient or counterproductive.

“So, all the candidates in the last election wanted subsidy removed, but they had different nuances. Atiku had a different nuance, Obi had a different nuance.

“But the key point here is that it’s politically a heartburn because if you look at the suffering, cost of living, and the general sentiment, it’s attractive for those who supported subsidy removal to turn back and now say otherwise.

“And, of course, in politics, you have to change your views, respond to constituencies, and look at the political map and decide where to pitch your camp.

“So, we have to admit that subsidy has not proven to be good; we have to admit that subsidy can be good, and it’s a fiscal tool that the government can use to boost production and consumption and have a good effect on the economy.

“We also have to admit that the manner in which the subsidy was removed was not properly thought out, and the complementary policies, including the devaluation of the currency, may have compounded the issue, but it will help the opposition depending on how it resonates.

“Nigerians will ask if the politicians have the capability to rein in corruption if you keep the subsidy or if you remove it.

“So, subsidy alone might not be the key to deciding who will better run the economy, but subsidy could prove to be important in messaging, and ultimately, it depends on how it’s messaged.

“If it’s messaged as part of the capability to control costs, improve policy, and enhance the welfare of citizens, it will help, but if it’s messaged as a mere policy tool, it might not bring much traction.”