‘We can’t go back’ — Peter Mbah says Restoring petrol subsidy will worsen poverty
Peter Mbah, governor of Enugu, says Nigeria cannot afford to reintroduce petrol subsidy, warning that doing so would worsen poverty and discourage investment.
Mbah spoke on Wednesday at the ‘Meet the Candidates’ town hall meeting organised by Afia TV in Enugu, where he defended President Bola Tinubu’s decision to remove the subsidy.
He described calls for the reintroduction of the subsidy as a misunderstanding of the country’s economic situation, saying the government should instead focus on ensuring Nigerians benefit from the policy.
“If you reintroduce fuel subsidy today, we will lose ten times whatever we are currently trying to gain in terms of the removal of subsidy. The poverty rate that you are going to experience will be very high because the naira would be automatically devalued,” he said.
“We cannot go back to subsidy. And I do not think it is in the interest of the country for us to even debate that.
“Again, we should not even debate it because we do not want to send a signal to prospective investors that we are contemplating it. That would take us back. It is going to create panic in the system. It is going to get investors to pull back.
“Those that are coming in today to invest in that sector will become jittery. So, it is not even a subject to debate. It is something that we have moved on from, and we should be thinking about how to ensure that the natural benefits cascade to the households, create jobs and generate wealth for our people.”
Mbah urged the federal government to encourage more private investment, pointing to growth in the stock market as an indication of improving investor confidence.
He said Tinubu’s policies have stabilised key macroeconomic indicators and encouraged foreign direct investment.
“You can see quite a lot of funds coming into our country, not just portfolio investments, but also direct investments,” he said.
“It is also going to strengthen because the macro indicators are right.”
Mbah said the petrol subsidy regime largely benefited wealthy Nigerians.
He added that the federal government is now using savings from subsidy removal to support vulnerable citizens through cash transfers and a programme providing seed capital to 1,000 people in each ward across the country.
MBAH LISTS ACHIEVEMENTS
Mbah said his administration has delivered on its campaign promises, citing projects such as Hotel Presidential, the International Conference Centre, Enugu Air, transport terminals, 268 Smart Green Schools, 260 primary healthcare centres, the International Hospital and CNG buses.
He said his plans for the next four years include improved education, paved roads, 660 megawatts of electricity to ensure 24-hour power supply, a monorail system and international flights from Enugu.
Mbah urged residents to support his re-election bid, saying his administration needs another term to sustain its achievements and deliver on development plans.
