Public affairs analyst Ayodele Adio says Nigeria’s current economic policy has failed spectacularly, arguing that worsening poverty and declining living standards have made petrol subsidy a major political issue ahead of the 2027 elections.
Speaking during an interview on ARISE News on Thursday, Adio said former Vice President Atiku Abubakar had clearly clarified his proposal to restore petrol subsidy, explaining that the model would be targeted at subsidising the cost of crude supplied to local refineries rather than returning to the previous system of subsidising imported petroleum products.
He described the proposal as an industrial policy designed to reduce energy costs and ensure that the benefits are eventually transmitted to consumers.
Adio said the political focus on subsidy was largely a consequence of the promises that accompanied the Tinubu administration’s decision to remove petrol subsidy.
According to him, the administration had promised that the savings would translate into infrastructure, improved healthcare, education and better living conditions for Nigerians.
He, emphasized that those expected benefits had not materialised sufficiently, while poverty and economic hardship have worsened.
“The reality today is that poverty has surged.”
Adio said the situation had left Nigerians desperate for alternatives, noting that purchasing power had dwindled and that the cost of living had continued to put pressure on households.
He stated that these conditions explain why Atiku’s proposed subsidy model had generated significant attention ahead of the 2027 elections.
Adio also rejected suggestions that Atiku’s proposal was an impromptu political decision or merely a reversal of his earlier position on subsidy.
He described the proposal as “basic humanism,” arguing that economic policies should be reconsidered when available data show that large numbers of citizens are becoming poorer.
The analyst cited a statement by economist Professor Doyin Salami that one per cent of Nigerians now control more than 44 per cent of the country’s wealth, arguing that the current economic approach had concentrated wealth among the elite while leaving many citizens struggling.
“That’s not an economy; that’s a casino.”
Adio explained that Atiku’s proposed model would reduce the price of crude supplied to local refineries, allowing them to produce petroleum products at lower costs and transmit those savings to consumers.
He compared the proposal with industrial subsidy programmes adopted by countries such as the United States and South Korea to support strategic industries and attract investment.
According to him, the proposed model is therefore different from the former subsidy regime, which involved subsidising imported petroleum products.
Adio said that supporting domestic refining while reducing energy costs would provide relief to Nigerians and stimulate economic activity.
He said policies that rely on the expectation that economic benefits will eventually reach ordinary citizens had not produced the desired results.
“That’s common sense, that’s pragmatic, because what is currently obtainable today has failed spectacularly.”
Adio further criticised what he described as trickle-down economics, arguing that similar approaches had failed to adequately protect vulnerable populations in other countries.
He cited the United Kingdom’s austerity measures between 2010 and 2020, claiming that poverty, homelessness and child poverty increased during the period.
He maintained that Nigeria needs targeted intervention and subsidy programmes capable of preventing millions of Nigerians from falling deeper into poverty and food insecurity.
For Adio, the debate over subsidy is ultimately a reflection of the wider economic question confronting Nigerians ahead of 2027: whether the policies currently being implemented are delivering meaningful improvements in the lives of ordinary citizens.
Ojo Triumph
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