Enugu State Governor Peter Mbah has renewed his support for President Bola Tinubu’s decision to remove petrol subsidy, arguing that restoring the former system could deepen poverty and undermine Nigeria’s economic progress.
Mbah made the remarks on Wednesday, October 21, 2026, during the “Meet the Candidates” town hall meeting organised by Afia TV in Enugu, where he discussed the country’s economic direction and defended the Federal Government’s reform agenda.
The governor described calls for a return to petrol subsidy as a step backwards, insisting that Nigeria should focus on making the benefits of subsidy removal reach households and businesses rather than revisiting the previous policy.
He warned that reinstating the subsidy could impose substantial economic costs, putting pressure on the naira and increasing the risk of further hardship for Nigerians already dealing with high living expenses.
“If you reintroduce fuel subsidy today, we will lose ten times whatever we are currently trying to gain in terms of the removal of subsidy,” Mbah said, adding that the poverty rate could rise significantly under such a scenario.
The governor also argued that even publicly considering a return to the old arrangement could unsettle investors, particularly those weighing opportunities in Nigeria’s energy sector.
According to him, uncertainty over whether the government would reverse the reform could discourage prospective investors from committing capital, potentially slowing investment and economic activity.
Mbah maintained that Nigeria should instead sustain policies aimed at attracting private investment and creating an environment where businesses can expand, employment opportunities can grow and wealth can be generated.
He also credited the Tinubu administration’s economic policies with improving key macroeconomic indicators and encouraging investment, although the broader effects of the reforms continue to be debated amid the pressure of higher living costs.
The governor argued that the former petrol subsidy arrangement did not adequately benefit the poorest Nigerians, claiming that wealthier consumers received a disproportionate share of its benefits.
He said resources generated through subsidy removal could be directed towards more targeted support for vulnerable households, including cash transfers and programmes intended to provide financial assistance to people across the country’s wards.
However, the effectiveness of such support depends on whether eligible households are identified accurately, assistance reaches them promptly and the amount provided meaningfully offsets the rising cost of essential goods and services.
The debate over subsidy removal remains contentious because the policy has affected the cost of transportation, food distribution, production and other daily activities, placing pressure on household budgets and small businesses.
While supporters of the reform argue that removing the subsidy reduces the burden on public finances and limits the distortions associated with the former system, critics have called for stronger measures to cushion the impact on ordinary Nigerians.
The International Monetary Fund has also advised against restoring a broad fuel subsidy, recommending targeted assistance for vulnerable households instead, on the grounds that universal fuel subsidies can be costly and may disproportionately benefit higher-income consumers.
The Federal Government has recently announced a temporary petrol discount arrangement through Nigerian National Petroleum Company Limited retail outlets, with priority for public transport operators, as part of efforts to provide relief without formally restoring the former subsidy system.
The arrangement has added another dimension to the debate, with questions about the duration of the relief, how it will be funded and whether any savings will translate into lower transport costs for commuters.
Beyond the national policy discussion, Mbah used the town hall meeting to highlight projects undertaken by his administration in Enugu State and outline his development ambitions for a possible second term.
He referenced initiatives including the International Conference Centre, Enugu Air, transport terminals, smart green schools, primary healthcare centres, an international hospital and compressed natural gas buses as examples of projects he said reflected his administration’s work.
The governor also outlined future ambitions for electricity generation, improved road access, additional transportation options and expanded international connectivity, presenting them as part of his vision for the state’s next phase of development.
He urged residents to support continuity in the state’s leadership, arguing that his administration should be allowed to build on its existing programmes and pursue further development goals.
Mbah’s comments come as fuel prices and the cost of living remain central to Nigeria’s economic debate, with political figures offering different approaches to easing the pressure on households ahead of the 2027 elections.
The central challenge for policymakers remains balancing fiscal sustainability and investor confidence with the immediate need to improve living standards for Nigerians affected by higher energy and transportation costs.