Enugu State Governor, Dr. Peter Mbah, has claimed that Nigeria’s former petrol subsidy regime primarily benefited wealthy individuals rather than ordinary Nigerians, arguing that government interventions should be redesigned to directly support vulnerable citizens.
Mbah made the submission during the ongoing Meet the Candidates (Special Town Hall) at the International Conference Centre (ICC), Enugu, where he addressed the removal of petrol subsidy and its implications for the economy.
The governor, who said he had previously criticised the subsidy system as an industry player, described the former arrangement as faulty, insisting that its benefits were not adequately directed at the masses.
“Subsidy on petroleum wasn’t a targeted subsidy, it’s a general one and the people who benefit aren’t the masses,” Mbah said.
He added: “It’s the big guys that benefited from the subsidy and the subsidy removed by the President is wrong.”
Mbah maintained that Nigeria needed a targeted subsidy framework that would prioritise low-income earners and economically disadvantaged citizens instead of a blanket arrangement.
“We need to have a targeted subsidy to aim at the downtrodden which the government is currently doing with the cash transfer and seed capital to entrepreneurs,” he said.
The governor also criticised what he described as a misconception about the country’s economic direction, arguing that discussions about subsidy removal should shift towards measures that would cushion its effects on Nigerians.
He warned that removing the subsidy could further weaken the naira, referring to a forecast by a minister, although he did not provide further details of the prediction during his remarks.
Mbah urged policymakers to focus on attracting private capital into the economy, including both portfolio and foreign direct investment, which he described as important indicators of economic performance.
According to him, the priority should be to ensure that improvements in macroeconomic indicators translate into tangible benefits for ordinary Nigerians.
“It shouldn’t even be a subject of debate, what should be the focus now is how the impacts can begin to trickle down,” he said.
