Shehu Sani: Subsidy return will distort Nigeria’s economy

Shehu Sani, a former Kaduna Central Senator, has criticized former Vice President Atiku Abubakar's pledge to reinstate fuel subsidies if elected president in 2027. Sani believes the policy is impractical and detrimental to Nigeria's economy, which he argues could not afford the substantial financial burden of returning to a subsidy regime.

In a recent press conference in Abuja, Sani emphasized the need for Nigeria to revamp its refineries and focus on refining crude oil locally, rather than continuing to import refined petroleum products. The former senator highlighted that Nigeria had spent between N3 trillion and N4 trillion on fuel subsidies, deeming the situation unsustainable for an oil-producing nation.

Sani also pointed out that the subsidy regime had been exploited, with some individuals diverting public funds to import petroleum products and sell them at higher prices in neighboring countries. He questioned the logic behind continuing to export crude oil, import refined products, and then subsidizing them with scarce foreign exchange.

Sani acknowledged the hardship the removal of fuel subsidies had caused Nigerians but maintained that a return to the previous system would distort economic stability. He urged the Federal Government to prioritize ongoing economic reforms and not burden the public with the costs. Sani called for investment in domestic refining, citing the Dangote Refinery as an example of the potential benefits of refining locally.

He urged political parties to campaign on substantive issues rather than ethnic, religious, or sectional sentiments to maintain national unity and stability in the 2027 general elections.