Otti Backs Subsidy Removal, Says Policy Support Should Not Be Confused With Political Alignment

Otti Backs Subsidy Removal, Says Policy Support Should Not Be Confused With Political Alignment

Abia State Governor, Dr. Alex Otti, has restated his support for the removal of fuel subsidy, arguing that government resources should be directed toward production rather than subsidising consumption.

Speaking during an interview on Arise Television, which was monitored by Media Today Correspondent, on governance, the economy and national politics, Otti said he had maintained the same position on subsidy for several years and had publicly argued for its removal even before the present Federal Government took office.

“I have always held the view that once you subsidize consumption, what you get is exactly what you wanted. So I don’t have a problem supporting production, but consumption should not be subsidized,” Otti said.

The governor said the issue was likely to become increasingly political as another election cycle approaches, but maintained that, in his view, removing the subsidy was the correct policy direction.

His comments come as fuel subsidy and the cost of living continue to feature prominently in Nigeria’s political debate ahead of the 2027 general election.

President Bola Tinubu announced the removal of petrol subsidy when he assumed office in May 2023, and his administration has continued to defend the policy.

Otti’s position is significant because he is a Labour Party governor while Tinubu leads the All Progressives Congress-led Federal Government.

However, Otti has previously said that his cordial working relationship with the President and his support for specific Federal Government policies should not be interpreted as political endorsement.

In July 2026, the Abia governor rejected claims that South-East governors had collectively endorsed Tinubu for the 2027 presidential election. He said his cooperation with the Federal Government was part of his responsibility as governor and was separate from party politics, while reaffirming his membership of the Labour Party.

During the latest interview, Otti also extended his subsidy argument to electricity.

He said manufacturers and other productive businesses were more interested in receiving reliable power than in electricity subsidies, arguing that dependable public power could still be cheaper than running diesel generators.

“For the people who use it for production, for their factories, those people, they really don’t need the subsidy; they just need the constant power supply,” he said.

The governor’s position places him on the same side as the Federal Government on the broad principle of reducing consumption subsidies, even as political differences remain between the Labour Party and the ruling APC.

The issue has also become a point of debate among opposition politicians. Labour Party presidential figure Peter Obi has criticised the implementation and impact of the current subsidy-removal policy while also arguing that subsidies should be targeted at productive sectors rather than consumption.

Otti, however, used the interview to emphasise policy rather than partisan considerations, suggesting that decisions should be judged by whether they strengthen production and the economy.

With political activities expected to intensify ahead of 2027, the governor’s comments further highlight the distinction he has sought to draw between working with the Federal Government on policies he considers beneficial and making a political commitment to the ruling party.