Nigeria: Will One-Month Petrol Discount Reduce Poverty, Insecurity? Obi Asks Tinubu

Peter Obi, the presidential candidate of Nigeria Democratic Congress, NDC, has questioned whether the Federal Government's 30-day petrol price discount would reduce poverty, unemployment, insecurity and inequality in Nigeria.

Obi raised the questions in a statement posted on his X platform on Sunday, describing the initiative as a reactive policy that substituted political optics for sound economic planning.

He argued that the discount, which he said amounted to less than five per cent of petrol costs, was unlikely to address the wider economic challenges facing Nigerians.

"The announcement by the APC-led Federal Government offering a 30-day discount on price of petrol to relieve the acute hardship and hunger caused Nigerians by its unplanned removal of subsidy can only be described as another very reactive and confused approach to governance that is now the culture of the Tinubu Government," he said.

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Obi said he had delayed commenting on the policy to allow time to assess its outcome, but maintained that the measure had not demonstrated a sustainable approach to addressing the country's economic difficulties.

He recalled that President Bola Tinubu removed the petrol subsidy on May 29, 2023, arguing that the decision was taken without adequate consultation or a proper assessment of its likely effects on the economy and the livelihoods of ordinary Nigerians.

According to Obi, the subsidy removal was followed by other policies, including the floating of the naira and tax reforms, which he said were implemented without proper sequencing and coordination.

He also criticised the government's handling of multiple budgets, arguing that the combined effect of the policies had contributed to inflation and rising costs of goods and services.

Obi attributed what he described as increasing multidimensional poverty, business closures, unemployment, insecurity, widening inequality and youth migration to the economic pressures arising from the policies.

He also said the policies had weakened the general well-being of Nigerians, insisting that the government should assess their impact before introducing temporary relief measures.

The former Anambra State governor called for a detailed and publicly available regulatory impact assessment of government policies, arguing that such an exercise would help identify their effects and guide necessary adjustments.

He said a government committed to sustainable economic growth should engage stakeholders and ordinary citizens in consultations to develop inclusive policies that improve living conditions and expand economic opportunities.

Questioning the objectives of the petrol discount, Obi asked whether it would increase productivity and exports or whether it was intended to determine if the subsidy should be restored.

"Will it reduce poverty, unemployment, insecurity, and inequality? Will it increase productivity and exports? Is it a test to ascertain if subsidy should be restored? Is it another political gambit in the face of threats of electoral loss in the 2027 election?" he asked.

"Too many questions, no answer!" Obi added.