The National Chairman of the All Progressives Congress (APC), Professor Nentawe Yilwatda, has warned against a return to the old fuel subsidy regime being advocated by former Vice President Atiku Abubakar
According to a press statement signed on Sunday August 30, 2026 by Abimbola Tooki, Special Adviser to the National Chairman of APC, (Media and Information Strategy,) the return to the old fuel subsidy would trigger fuel queues, force a reversal of the new minimum wage, and lead to the cancellation of education grants for Nigerian students.
Professor Yilwatda made the call for caution in Abuja while receiving a delegation of critical economic stakeholders who met with him to address the state of the Nigerian economy and the prospects of ongoing reforms.
In the statement, the APC chairman said the debate on fuel subsidy must go beyond political rhetoric and be judged by its fiscal consequences and lessons from previous political regimes for states, workers, education and infrastructure development.
Yilwatda argued that while subsidy may appear attractive because it promises cheaper petrol, the proposal to restore subsidy raises bigger question about funding and sustainability.
“Subsidy may appear attractive because it promises cheaper petrol, but Nigerians must also ask the bigger question: who pays for the subsidy and what happens to the resources that government must divert to finance it?
A policy cannot be judged only by its immediate benefit at the pump. We must examine its impact on government revenues, salaries, pensions, education, healthcare, infrastructure and the overall capacity of government to meet its obligations to citizens,” he said.
He stated that Atiku’s proposal raises fundamental questions about how such a policy would be financed without returning Nigeria to the cycle of fiscal pressure that defined the previous arrangement.
APC Defends Reforms, Warns Against Subsidy Return
The APC chairman stressed that before the removal of subsidy, many state governments struggled to pay salaries, with others unable to pay workers and some resorting to partial payments.
He noted that the removal of subsidy and the attendant rise in federal allocations to states had significantly improved the fiscal position of sub-national governments, enabling them to meet salary and pension obligations and fund development projects.
On wages, Yilwatda said the sustainability of the new minimum wage must be factored into the subsidy debate.
“The challenge is not merely to announce higher wages but to create an economic environment in which governments can consistently pay them without sacrificing investment in infrastructure, education, healthcare and other essential public services,” he explained.
He also raised concerns about education financing, citing the Nigeria Education Loan Fund, (NELFUND) as a critical intervention that has expanded access to tertiary education. He warned that a fiscally unsustainable subsidy regime could weaken government’s capacity to fund education and other essential services, recalling the prolonged university disruptions under past administrations.
Yilwatda highlighted that the current reforms are opening opportunities for young Nigerians in the digital economy. He cited the ability of Nigerians to use locally issued bank cards for international transactions and the expansion of digital payment systems as examples.
“Our young people are no longer limited by geographical boundaries. A Nigerian content creator, software developer, consultant or freelancer can provide services to clients anywhere in the world. But that opportunity requires a financial and payment system capable of supporting the global digital economy,” he said.
He cautioned against policies that could undermine progress in strengthening Nigeria’s financial and digital ecosystem.
While acknowledging that the hardship following subsidy removal is real, Yilwatda said government must continue to strengthen measures to cushion the impact on vulnerable Nigerians. However, he insisted that returning to subsidy is not the answer but explained further that wage increases requires a ” corresponding improvement of both the Federal and State governments to meet their recurrent obligations.
“What Nigerians deserve is an economy that can sustainably finance good wages, quality education, healthcare, infrastructure and social protection without depending on an opaque and expensive subsidy system,” he stated.
He urged political leaders proposing a return to subsidy to provide clear answers on cost, funding mechanism, duration and long-term sustainability.
“Whenever anybody proposes a return to subsidy, Nigerians should ask: how much will it cost? Where will the money come from? What programmes will be sacrificed to finance it? And for how long can the government sustain it?”
However, The APC National Chairman said the party-led Federal Government remains committed to reforms aimed at building a more productive, competitive and sustainable economy, and called on stakeholders, labour, businesses and citizens to engage government constructively to ensure the benefits of reforms are widely shared.
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