By NIyi Jacobs
The National Chairman of the All Progressives Congress (APC), Prof. Nentawe Yilwatda, has warned that former Vice President Atiku Abubakar’s proposal to restore fuel subsidy could return Nigeria to the era of fuel queues and severe fiscal pressures.
Yilwatda said the subsidy regime could also undermine the government’s ability to sustain the current minimum wage, fund education and meet other critical obligations to Nigerians.
The APC chairman spoke in Abuja while receiving a delegation of economic stakeholders who visited to discuss Nigeria’s economy, ongoing reforms and prospects for sustainable growth.
According to him, the subsidy debate should go beyond the immediate attraction of cheaper petrol and focus on how the policy would be financed and its impact on government revenues.
“Subsidy may appear attractive because it promises cheaper petrol, but Nigerians must also ask the bigger question: who pays for the subsidy and what happens to the resources that government must divert to finance it?” he said.
Yilwatda argued that the removal of subsidy had improved the financial position of many state governments through increased federal allocations, enabling them to meet salary and pension obligations and undertake development projects.
He warned that reversing the policy without a sustainable financing plan could recreate the fiscal difficulties experienced under previous administrations.
The APC chairman also linked the subsidy debate to the sustainability of the new minimum wage, stressing that governments must have sufficient revenue to consistently pay improved wages without sacrificing spending on infrastructure, healthcare and education.
He further highlighted the Nigeria Education Loan Fund (NELFUND), describing it as an important intervention that has expanded access to tertiary education financing and reduced the financial burden on families.
Yilwatda said a return to a costly subsidy regime could put pressure on funding for education and other essential public services.
He, however, acknowledged the hardship caused by subsidy removal, urging the Federal Government to strengthen measures designed to cushion the impact of the reforms on vulnerable Nigerians.
“The hardship Nigerians have experienced is real, and government must continue to respond to it. But the answer cannot simply be to return to a system whose long-term fiscal implications created serious distortions in our economy,” he said.
Yilwatda also pointed to improvements in Nigeria’s financial and digital payment ecosystem, including increased capacity for Nigerians to use locally issued bank cards for legitimate international transactions.
He said such developments were particularly important to young Nigerians, freelancers, software developers, content creators and other digital entrepreneurs who serve clients globally.
The APC national chairman challenged proponents of subsidy restoration to explain its projected cost, funding source, duration and long-term sustainability.
He said Nigerians deserved a robust economic policy debate anchored on facts, sustainability and lessons from the country’s recent economic history.
Yilwatda reaffirmed the APC-led Federal Government’s commitment to reforms aimed at building a productive, competitive and sustainable economy, while urging stakeholders to engage constructively with government to ensure that the benefits of the reforms are more widely shared.
The statement was signed by Abimbola Tooki, Special Adviser to the APC National Chairman on Media and Information Strategy, on August 30, 2026.
