2027: Fuel subsidy alone might not decide who runs Nigeria’s economy better – Sam Amadi

Sam Amadi, the Director of Abuja School of Social and Political Thoughts, has stated that the decision to remove or restore fuel subsidies in Nigeria should not solely determine who can run the country's economy better in the 2027 general elections. Although fuel subsidy removal was a prominent topic in the 2023 elections, Amadi believes that it might become a significant issue in the upcoming 2027 election cycle.

In a recent appearance on Arise Television's Morning Show, Amadi highlighted that the economics of fuel subsidy is debatable, with some arguing that it is an inefficient policy tool, while others believe it can be a useful instrument for economic development in Nigeria.

Amadi noted that during the 2023 elections, various presidential candidates, including Bola Tinubu's African Democratic Congress (ADC), Atiku Abubakar, and Peter Obi, all advocated for the removal of fuel subsidies. However, he pointed out that each candidate had a different perspective on the issue. Amadi emphasized that while subsidy removal may have significant political implications, as it could be an attractive proposition for voters frustrated by high living costs, the government also needs to consider the potential benefits of fuel subsidies in promoting production, consumption, and economic growth.

Amadi warned that the manner in which fuel subsidies were removed in 2023 was poorly thought out and coupled with other economic policies, such as the devaluation of the currency, which may have exacerbated the situation. Consequently, the success of the opposition in this election cycle might depend on how they address the issue of fuel subsidies and whether they can convincingly argue that the government is capable of controlling corruption while maintaining or removing the subsidy.

Ultimately, Amadi believes that fuel subsidy alone will not be the deciding factor in deciding who will better run Nigeria's economy in the 2027 general elections. However, he emphasizes that the messaging around fuel subsidy could prove to be crucial, as it will depend on how politicians present it as a tool for cost control, policy enhancement, and welfare improvement for citizens.

If the subsidy issue is effectively communicated in this manner, it could provide an advantage for the opposition, but if not, it may not have much traction with voters.