APC Chairman: Atiku’s Subsidy Plan Will Kill Minimum Wage

The National Chairman of the All Progressives Congress, Prof. Nentawe Yilwatda, warned that returning to petrol subsidy could exacerbate Nigeria's fiscal problems and undermine the government's capacity to sustain the current minimum wage. This concern was raised during a meeting with economic stakeholders in Abuja, following Atiku Abubakar's pledge to reinstate the subsidy if elected in 2027.

The former Vice President has also criticized the use of subsidy savings for poverty alleviation and development. Yilwatda urged Nigerians to consider the broader financial implications of subsidy, emphasizing that it may not be as attractive as it appears and questioning who would bear the cost and what would happen to resources diverted to fund it.

The APC chairman noted that the policy's impact could extend beyond fuel prices, affecting government spending on salaries, pensions, education, healthcare, and infrastructure. He cautioned against reversing the policy without a thorough assessment of its effects on public finances, emphasizing that higher wages require dependable government revenue to be maintained alongside other public obligations.

President Bola Tinubu's decision to end the petrol subsidy in May 2023 led to a surge in petrol prices and heightened pressure on transportation and household costs. Yilwatda cautioned against reverting to the policy without carefully evaluating its consequences on government revenues and citizens' welfare.