Chike-Obi Slams Atiku’s Subsidy Promise, Says It Could Drain Nigeria’s Wealth

Former Fidelity Bank Chairman and pioneer Managing Director of the Asset Management Corporation of Nigeria, Mustafa Chike-Obi, has criticised former Vice-President Atiku Abubakar’s pledge to restore petrol subsidy, warning that such a move could impose a heavy burden on the nation’s finances.

Speaking during a policy discussion, Chike-Obi argued that selling petroleum products below their market value would effectively deprive Nigeria of substantial foreign exchange earnings that could otherwise support economic development.

He said fuel subsidies have historically created distortions in the market, encouraged smuggling and increased the cost of government oversight, as authorities would be forced to police supply chains and enforce price controls.

According to him, subsidy regimes often generate opportunities for abuse while placing significant pressure on public resources, making them difficult to sustain over the long term.

Rather than returning to a blanket subsidy system, Chike-Obi advocated targeted support for vulnerable Nigerians through a voucher-based programme. He explained that such an approach would allow government assistance to reach those who genuinely need it without disrupting market forces.

The economist maintained that direct support mechanisms would be more efficient and less costly than subsidising fuel prices for the entire population.

Also speaking during the discussion, policy analyst Ken Ikpe defended the current fuel pricing framework, arguing that reforms should be strengthened rather than reversed. He stressed the need for policy consistency, saying frequent changes undermine economic planning and investor confidence.

The comments come amid growing debate over fuel subsidy policy ahead of the 2027 presidential election, with differing views emerging on the best approach to easing economic hardship while maintaining fiscal stability.