According to a report by Punch Newspaper on Thursday, August 20, 2026, Nyesom Wike, the Minister of the Federal Capital Territory, has defended the Federal Government’s decision to remove fuel subsidy, accusing former Vice President Atiku Abubakar of taking an inconsistent position on the policy.
Wike said the former vice president’s promise to restore subsidy was at odds with his earlier position.
Wike made the remarks on Thursday in Abuja while inspecting ongoing infrastructure projects across the Federal Capital Territory.
He recalled that Atiku, during the 2023 presidential campaign, had promised to remove fuel subsidy within his first 100 days in office if he won the election.
The FCT minister said it was therefore contradictory for Atiku to now advocate the return of the subsidy after previously supporting its removal.
According to Wike, such a position raises questions about the consistency of the former vice president’s economic policy proposals, particularly regarding the management and reform of Nigeria’s petroleum sector.
Wike further argued that bringing back fuel subsidy would conflict with the direction established by the Petroleum Industry Act.
He explained that the legislation was intended to transform the midstream and downstream petroleum industry into a commercially driven and competitive sector, rather than one dependent on government-controlled pricing.
According to the minister, a return to government intervention in fuel pricing could undermine the reforms introduced under the petroleum law.
He maintained that reversing the policy could introduce uncertainty into the regulatory environment and discourage investors who require a stable and predictable framework before committing resources to the sector and supporting long-term economic stability across the country.
He also warned that restoring subsidy could revive problems associated with the previous system, including fuel smuggling, arbitrage, inefficiency and unclear fiscal practices.
Wike said the policy had also reduced the amount of revenue available for distribution through the Federation Account, while artificially low domestic prices could encourage fuel consumption outside Nigeria’s borders.
Wike said: “Reintroducing government-controlled fuel prices would reverse this policy direction, create regulatory uncertainty and weaken investor confidence in the sector.
“It will also recreate the distortions Nigeria has spent years trying to eliminate. Experience has shown that fuel subsidies encourage smuggling, arbitrage, inefficiency and opaque fiscal practices, while reducing revenues available to the Federation Account.
“Rather than benefiting only Nigerians, artificially low domestic prices often subsidise fuel consumption beyond Nigeria’s borders,” Wike said.
SOURCE: AsamaWorld
