Ex-Senator Arise Criticizes Atiku's Subsidy Plan, Warns of Renewed Corruption

Former Senator Ayo Arise has sharply criticized the proposal by African Democratic Congress (ADC) presidential candidate Atiku Abubakar to reinstate Nigeria's fuel subsidy regime, warning that such a move would plunge the country back into an era of corruption and economic waste. Arise, a chieftain of the All Progressives Congress (APC), described the proposal as economically retrogressive.

Arise argued that the removal of fuel subsidies has significantly bolstered the financial capacity of both federal and state governments. This has enabled them to consistently meet salary obligations, fund development projects, and reduce their reliance on borrowing. He stressed that the benefits of subsidy removal should be viewed beyond the immediate increase in the cost of living.

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I would imagine that the former vice president’s advisers have not done him any favour by failing to explain that governments now have sufficient funds to pay salaries without interruption or running to the Federal Government for loans.

According to the former senator, a key achievement of subsidy removal is the enhanced ability of governments to pay workers' salaries regularly without needing financial bailouts or loans. This consistent salary payment stimulates the economy, as workers can cover expenses like school fees and meet family needs, thereby sustaining purchasing power and economic activity.

He further maintained that a substantial portion of the increased revenues available to governments stems directly from the removal of fuel subsidies. These funds are now being redirected to critical sectors, including education through initiatives like the Nigerian Education Loan Fund (NELFund). Arise cautioned that reinstating the subsidy would revive a system historically plagued by corruption, where public funds were allegedly diverted for questionable fuel importation claims, with products often ending up in neighboring West African countries.

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That regime was characterised by massive corruption, mismanagement and the siphoning of public resources. People merely presented importation documents, collected subsidy payments without bringing products into Nigeria, and diverted them to neighbouring West African countries.