Former Anambra State Governor and presidential candidate Peter Obi has challenged President Bola Ahmed Tinubu to account for the resources reportedly generated through fuel subsidy removal, increased government revenue and external borrowing.
Obi challenged Tinubu to account for N15.8 trillion in subsidy savings and over $100 billion in loans, according to reports on Sunday, 8 November. The challenge is the latest in a series of criticisms by Obi of the president’s economic management, and it comes as Nigeria grapples with a deepening power crisis and rising costs.
The fuel subsidy was removed by Tinubu shortly after he took office in May 2023, a move that freed up trillions of naira in government revenue but also pushed up the cost of petrol and transport, contributing to a cost-of-living crisis. Obi has argued that the savings from the subsidy removal should have been used to improve the lives of Nigerians, and that the government has not shown what the money was spent on.
A debate over the economy
Tinubu has defended his economic reforms, including the removal of the fuel subsidy and the floating of the naira, arguing that they were necessary to avert economic collapse. At a rally in Rivers State on Saturday, the president warned that the naira float had averted a “wheelbarrow economy” for market shoppers.
Obi’s challenge is part of a broader debate in Nigeria over the management of the economy, with critics arguing that the reforms have hurt ordinary Nigerians while the government argues they were necessary for long-term stability. The debate is likely to intensify as the 2027 elections approach, with Obi and former Vice President Atiku Abubakar both positioning themselves as challengers to Tinubu.
Atiku has vowed to stay on the ballot for 2027 despite a court ruling that voided his candidacy, and has appealed the ruling. The opposition is fragmented, but Obi’s challenge to Tinubu over the subsidy savings is a sign that the economic debate will be central to the campaign.
What the figures mean
The N15.8 trillion figure cited by Obi refers to the savings the government is reported to have made from the removal of the fuel subsidy, while the $100 billion figure refers to external borrowing. The government has not published a detailed account of how the subsidy savings were spent, and Obi’s challenge is a call for transparency.
The challenge comes as Nigeria’s oil reserves declined by 221 million barrels despite production gains, according to reports, and as the government faces criticism over persistent electricity outages. Power Minister Joseph Tegbe has promised that offline generating units will return to the grid within 48 to 72 hours, but the crisis has exposed the fragility of the country’s power system.
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