Peter Obi Vows to Restore Fuel Subsidy if Elected, Raises Fresh Questions Over Policy Shift

Nigeria’s 2027 presidential campaign has entered another phase of debate over petrol pricing after the presidential candidate of the Nigeria Democratic Congress, Peter Obi, said he would restore fuel subsidy if elected president.

Obi made the position known during a BBC interview on Tuesday, October 6, 2026, arguing that the major problem with the subsidy system was not the concept itself but the corruption associated with its implementation.

The declaration marks a significant change from the position associated with Obi’s 2023 presidential campaign, when he supported the removal of petrol subsidy while criticising the manner in which the policy was implemented.

From subsidy removal to subsidy restoration

During the 2023 election campaign, Obi argued that government funds being spent on fuel subsidy should instead be directed towards sectors such as education, healthcare and infrastructure.

He also maintained that subsidy removal itself was not necessarily wrong, but that it needed to be carried out in an organised manner and accompanied by measures to protect Nigerians from the consequences of rising fuel prices.

As recently as August 2026, Obi reiterated his support for subsidy removal, saying that the mismanagement of proceeds from the policy should not be used as an argument for restoring it.

However, his position has evolved in recent weeks.

In September, Obi and his party began describing a possible subsidy arrangement that would be different from the previous system. His running mate, Rabiu Kwankwaso, had earlier said an NDC administration would bring back subsidy “in our own way”, while Obi’s camp argued that the proposal would focus on affordability, domestic refining and eliminating corruption.

Obi has now gone further by expressly confirming that his administration would restore the subsidy, provided the corruption associated with the old arrangement is removed.

Obi’s proposed condition

The central argument in Obi’s latest position is that subsidy itself is not necessarily the problem.

According to him, corruption surrounding the system is what undermined its effectiveness. His proposed approach would therefore involve retaining a form of subsidy while attempting to prevent the diversion or misuse of public funds.

That distinction is important because it suggests that the proposed policy would not necessarily amount to a return to the exact subsidy regime that existed before 2023.

The question that remains is how such a system would be designed, monitored and financed.

Why the debate matters

The fuel subsidy question has remained one of Nigeria’s most politically sensitive economic issues.

President Bola Tinubu announced the removal of petrol subsidy during his inauguration on May 29, 2023, declaring that the subsidy was gone. The decision was followed by a major increase in petrol prices and significant pressure on transportation and household expenses.

The Federal Government has defended the policy as necessary for reducing the financial burden of subsidy and redirecting public resources.

Opposition politicians, however, have continued to question how the savings from subsidy removal have been utilised and whether Nigerians have received sufficient benefits from the policy.

The 2027 presidential contest is consequently turning the subsidy question into a debate not simply about whether subsidy should exist, but about who should bear the cost of petrol and how government intervention should be managed.

The funding question

One of the most important issues surrounding Obi’s proposal is funding.

Any subsidy programme requires government to cover part of the difference between the actual cost of supplying petroleum products and the price paid by consumers, depending on how the scheme is structured.

For an economy already facing substantial fiscal pressures, the sustainability of such intervention would depend on the amount committed, the source of funding and the mechanism used to prevent abuse.

A transparent system would also require reliable information about crude oil production, petroleum imports, domestic refining, distribution volumes and government revenue.

Obi and Kwankwaso have previously spoken about establishing mechanisms to monitor oil production, transactions, imports, exports and government revenues as part of their proposed approach.

Domestic refining could change the equation

The NDC’s argument also places emphasis on domestic refining.

Kwankwaso had explained that the proposed intervention could involve greater investment in refineries and domestic petroleum production, with the objective of making petrol available to Nigerians at a more affordable price.

This raises an important distinction between a subsidy based largely on imported petroleum products and one linked to domestic production.

If more petrol is produced locally, government could potentially have greater control over supply and reduce some of the foreign-exchange pressures associated with importing refined products.

However, the extent to which such an arrangement would reduce the eventual cost to government would depend on refining costs, crude supply, infrastructure, distribution and the efficiency of the petroleum market.

A campaign promise that requires details

Obi’s latest declaration provides greater clarity on the NDC’s direction on fuel pricing, but it also raises questions that the party would need to answer before the 2027 election.

How much would the proposed subsidy cost annually?

Would it apply to all petrol consumed in Nigeria or only to specific quantities?

How would government prevent fraudulent claims and diversion?

Would the subsidy be financed from crude oil revenues, general government revenue or another source?

And what mechanisms would allow Nigerians to independently verify the amount being spent?

These questions are particularly relevant because the previous subsidy system became associated with allegations of large-scale financial irregularities and weak transparency.

The proposed alternative would therefore have to demonstrate not only that petrol could become more affordable, but also that public resources would be protected.

Obi also rejects calls to step down

The subsidy debate came alongside another political issue during Obi’s BBC interview.

The NDC presidential candidate rejected suggestions that he should withdraw from the 2027 presidential race in favour of another opposition candidate if opposition parties eventually agree on a consensus candidate.

Rather than stepping down, Obi said the opposition should concentrate on doing what is necessary to win the election.

His position indicates that the 2027 contest is likely to remain shaped by continuing negotiations and political realignments among opposition groups.

The wider 2027 economic debate

Fuel subsidy is only one component of the economic policies being presented by presidential candidates.

The candidates have offered different approaches to petrol pricing, the naira, domestic production, infrastructure, agriculture, education, healthcare and job creation.

Obi has said his broader economic agenda would focus on increasing productivity and investing in agriculture, education, security and infrastructure. He has also indicated that he would retain the floating exchange-rate policy while seeking to improve productivity and strengthen the value of the naira.

The subsidy debate therefore forms part of a larger question facing voters: whether government should prioritise direct intervention to reduce immediate living costs or concentrate on structural reforms expected to produce longer-term economic benefits.

What has changed?

Obi’s latest statement represents a clear shift in the language surrounding his position on petrol subsidy.

In 2023, he supported removing the subsidy while criticising the process through which it was implemented. In August 2026, he again defended removal while arguing that the proceeds had been poorly managed. By September, his camp was discussing a new form of subsidy, and he has now explicitly confirmed that he would restore it if elected, subject to eliminating the corruption associated with the old system.

The next stage of the debate will likely centre on implementation.

For Nigerians, the important questions are not only whether subsidy would return, but what form it would take, how much it would cost, who would benefit, how it would be financed and what safeguards would prevent a repeat of the problems associated with the previous system.

As the 2027 presidential campaign progresses, candidates will be under increasing pressure to move beyond broad promises and explain how their economic policies would work in practice.