Abia State Governor, Alex Otti, has defended the removal of petrol subsidy, saying government resources should be channelled towards supporting production rather than subsidising fuel consumption.

Otti made the position known during an exclusive interview aired by Arise Television on Friday while discussing the economic consequences of subsidy removal and his longstanding opposition to subsidising petrol consumption.

The governor said he had consistently supported the removal of the subsidy, stressing that while he favoured government intervention to boost production, he did not support subsidising consumption.

“I don’t have a problem supporting production, but consumption should not be subsidised,” Otti said.

He recalled that he had advocated for the removal of the subsidy during the COVID-19 pandemic in 2020, when global demand for crude oil had dropped significantly.

According to him, the conditions in the international oil market at the time provided an opportunity for Nigeria to end the subsidy regime.

Otti also argued that subsidising fuel consumption encouraged excessive usage because consumers were not paying the full economic cost of the product.

He maintained that the decision to remove the subsidy was necessary, despite the political arguments that could emerge as elections approach.

“You know, as election approaches, people will be making all sorts of arguments, but removing the subsidy was the right thing to be done.

“And I don’t think anybody who is praying that subsidy returns means well for the country,” he said.

The Abia governor further criticised the previous subsidy arrangement, alleging that it was vulnerable to abuse and describing the system as a “scam”.

He explained that when consumers were shielded from the actual cost of petrol, they had less reason to reduce their fuel consumption.

“So if you are being subsidised, you can just blast all vehicles, maybe 20 vehicles, you put all of them on the road because somebody is paying for it,” Otti said.

While acknowledging the difficulties associated with the policy, the governor said Nigerians would experience hardship during the initial period following subsidy removal.

“There will be the pain initially,” he said.

President Bola Tinubu announced the removal of the petrol subsidy on May 29, 2023, shortly after taking office. The decision ended the system through which the government absorbed part of the cost of petrol in an effort to keep pump prices lower for consumers.

The policy was followed by a significant rise in petrol prices and contributed to increased transportation and living costs across the country.

The Federal Government has subsequently introduced various measures aimed at reducing the impact of the reform, while calls for the restoration of fuel subsidy have remained part of the public debate over the country's economic situation.