Peter Obi, the Labour Party presidential candidate, criticized the Federal Government’s abrupt removal of the fuel subsidy, calling it an unadvisable approach that has caused significant hardship for Nigerians.
In a tweet thread posted after attending a presidential petition case at the Court of Appeal, Obi responded to judicial correspondents who pressed him on the issue, clarifying his long-standing support for subsidy removal but emphasizing the need for a phased process to address waste and corruption.
Subsidy as Organized Crime
Obi described the old subsidy regime as an “organized crime,” a stance he has held since serving on President Goodluck Jonathan’s Economic Management Team.
He stated, “I consistently maintained that subsidy should be removed because I see it as organized crime.
People were just stealing the resources of the country, and I showed it empirically in my statistical analysis that we were not consuming the amount of fuel they claimed we consumed.”
Gradual Removal Approach
Using the analogy of a dentist removing a painful tooth, Obi advocated for a gradual approach to subsidy removal.
He explained, “If you approach a dentist to remove a painful tooth, he will apply a local anesthetic to numb the area around the tooth so you do not feel pain. It’s not the same thing as pulling the tooth forcefully. The pain you feel will be different.”
He referenced Jonathan’s administration, which implemented relieving policies like Sure-P during subsidy removal efforts, and noted that his manifesto outlines a transparent plan to remove subsidies while using savings to alleviate public suffering.
Critique of Government Approach
Obi criticized the government’s tendency to demand public sacrifice without delivering promised improvements, stating, “The problem in Nigeria is that often government tells the masses to suffer and sacrifice, for a better future; but in the future things get worse.”
He emphasized governing with the people, showing empirically how savings from subsidy removal would benefit the masses.
Context of Labour Unions’ Response
The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) called off a planned nationwide strike scheduled for June 7, 2023, following a six-hour closed-door meeting with Federal Government officials on June 5, 2023, at the Presidential Villa, Abuja.
The agreement was announced by Femi Gbajabiamila, Speaker of the House and incoming Chief of Staff, and confirmed by NLC President Joe Ajaero. The meeting addressed issues arising from the subsidy removal, leading to a resolution to form a joint committee to review related demands.
