Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has described petrol subsidy as financially unsustainable, pushing back against calls by some presidential candidates to reintroduce the policy.
Lokpobiri made the remarks on Friday at a breakfast meeting with media practitioners in Yenagoa, Bayelsa State, where he criticised proposals to return to a subsidy regime.
The minister’s comments come amid a renewed political debate over petrol pricing ahead of Nigeria’s 2027 presidential election.
Former Vice-President Atiku Abubakar, who is now the presidential candidate of the African Democratic Congress (ADC), has said he would restore a form of petrol subsidy if elected.
Mr Atiku has argued that the removal of the subsidy has increased economic hardship and that government should intervene to reduce the burden of high fuel prices on Nigerians. (TheCable)
Peter Obi, another leading opposition figure, has also been drawn into the debate, although his recent position differs from Mr Atiku’s. Mr Obi has argued that the subsidy should remain removed, while questioning how the savings from its removal have been managed. (TheCable)
Mr Lokpobiri’s intervention comes as the subsidy debate increasingly becomes a major issue in discussions about Nigeria’s economic direction and the 2027 election.
Supporters of subsidy argue that government intervention can help shield households and businesses from the effects of high petrol prices. Critics, however, have raised concerns about the fiscal cost of maintaining such a policy and the sustainability of funding it.
Nigeria removed its petrol subsidy in 2023, a decision that led to a sharp rise in fuel prices but also increased revenues available for distribution among the federal, state and local governments.
The debate has since remained contentious, with economists and political actors divided over whether the benefits of subsidy removal have outweighed its impact on the cost of living.
Mr Lokpobiri maintains that returning to the previous system would place an unsustainable financial burden on the country.
The renewed dispute over petrol subsidy is expected to remain a significant issue as political parties and presidential candidates begin to set out their economic policies ahead of the 2027 elections.
