Atiku is playing to the gallery, 15 northern states would collapse if subsidy returns, OAU professor says

Restoring Nigeria’s petroleum subsidy would be “calamitous” and could cause more than 15 northern states to collapse within three months, according to Professor Tunji Ogunyemi of Obafemi Awolowo University.

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I think it is calamitous, to say the least, if we reverse the subsidy regime in Nigeria in favour of returning the subsidies.

Ogunyemi, an economic historian, lawyer and public affairs analyst, said the subsidy would reduce revenue flowing into the Federation Account. That account, he said, serves as the financial lifeline for more than 30 states. Only about four states, he added, could survive without the monthly federal allocations.

He warned that a fall in revenue would leave states unable to pay salaries, let alone pensions or capital expenditure. He also said Nigeria would struggle to meet its debt obligations if the subsidy regime returned.

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The Federation Account is the jugular of more than 30 states in the federation. Only about four states in Nigeria can survive without the Federation Account.

The professor made the comments on the Open Forum 360 podcast hosted by Dare Adekanmbi. He was responding to calls by some politicians to restore the subsidy, including the position associated with African Democratic Congress presidential candidate Atiku Abubakar.

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I think it is playing to the gallery, with due respect to him. He should be a little less opaque about his policy.

Ogunyemi said Atiku’s proposal was “playing to the gallery” and that the former vice president should be more transparent about its consequences. He identified Lagos, Delta and Rivers as states that could cope without federal monthly allocations, while citing Taraba as an example of a state that could not.

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You don’t want to get political support through votes or more votes by wanting to cut the jugular of your country.