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.”
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