Alex Otti, Abia state governor, says subsidising consumption encourages inefficiency and corruption rather than production.
Otti, a member of the opposition Labour Party (LP),
reiterated that he is in support of some of President Bola Tinubu’s policies.
Speaking during an interview on Arise TV on Thursday, Otti
expressed his support for the removal of petrol subsidy by the Tinubu
administration, warning against attempts to restore same.
He said government resources should be channelled towards
supporting production and creating systems that enable businesses to operate
efficiently.
“I’ve always been consistent on subsidies. And I’ve written
extensively. I also refer you to my backpage in THISDAY, including the one that
I wrote in 2020 during COVID-19. At that time, nobody was buying oil, and I
said it was a good time to remove the subsidy,” Otti said.
The governor added that subsidising consumption would
encourage waste and create opportunities for abuse.
He noted that consumers become conscious of their usage when
they bear the cost themselves.
“When you subsidise consumption rather than production, you
are just subsidising laziness. You are subsidising, sometimes, corruption,” he
said.
He noted that the removal of subsidy on premium motor spirit
(PMS) was the right decision ab initio, despite the hardship the policy has
inflicted on Nigerians.
“You know, as election approaches, people will be making all
sorts of arguments. But removing the subsidy was the right thing to be done,”
the governor said.
“If you are pushing for a subsidy to return, you don’t mean
well for the country.”
Otti said businesses do not necessarily require subsidies if
the government can guarantee reliable power supply.
“For the people who use it for production, for their
factories, those people, they really don’t need the subsidy. They just need
constant power supply. And once you’re able to guarantee them constant power
supply, they’ll pay,” he added.
In August, Atiku Abubakar, presidential candidate of the
African Democratic Congress (ADC), said he will restore petrol subsidy if
elected president in 2027.
Atiku said the government has failed to account for the
funds saved from the removal of subsidy.
“I did not oppose the removal of the oil subsidy, but where
is the money? Where did it go? It was intended to reduce poverty and help
children attend school. Where is the money now? It seems they are just stealing
it,” Atiku said in Hausa.
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