A professor at Obafemi Awolowo University (OAU), Tunji Ogunyemi, has warned that restoring petrol subsidy could leave about 15 states in northern Nigeria unable to sustain their operations within three months.
Ogunyemi gave the warning during an interview on Open Forum 360 on Friday, a podcast hosted by Dare Adekanmbi, while reacting to a proposal by African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to restore petrol subsidy if elected in 2027.
The professor argued that bringing back the subsidy would reduce the funds available for distribution through the Federation Account, on which most states rely to finance government operations.
“I think it is calamitous, to say the least, if we reverse the subsidy regime in Nigeria in favour of returning the subsidies,” he said.
Ogunyemi said the consequences would extend beyond the states, listing reduced Federation Account revenue as one of four major problems that would arise from a return to the subsidy regime.
