Atiku Abubakar Advocates for Fuel Subsidy Restoration

Atiku Abubakar, the former Vice-President of Nigeria and presidential candidate for the African Democratic Congress (ADC), has stated that he would restore a form of fuel subsidy if elected in 2027. He argues that Nigeria's oil resources can be utilized to shield citizens from excessive energy costs.

This proposal has sparked controversy, with critics highlighting the fiscal burden of subsidies, the potential for corruption, and the disproportionate benefits to wealthier Nigerians. They also point to the failures of the previous subsidy regime, which was marred by fraud and weak controls.

However, some economists contend that the failure of past subsidies does not inherently discredit the concept of energy subsidies. Instead, they suggest that Nigeria's approach to designing and administering subsidies was flawed.

The World Bank's Global Fuel Subsidies and Price Control Measures Database indicates that many countries, including major economies, utilize some form of fuel subsidy or price control, challenging the notion that only poorly governed nations employ such measures.