Mbah says fuel subsidy return would worsen poverty as NECA seeks relief for businesses

Enugu State Governor Peter Mbah has said Nigeria cannot go back to paying fuel subsidy, warning that bringing it back would deepen poverty and weaken the naira.

He spoke on Wednesday at a "Meet the Candidates" town hall organised by Afia TV in Enugu, where he also defended his record in the state and asked voters to back his re-election.

"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," Mbah said, according to Vanguard and The Sun, which both reported the event.

He argued that reintroducing the subsidy would cost the country more than it gains now. In his words, Nigeria would "lose ten times whatever we are currently trying to gain", and the poverty rate would rise sharply because the naira would be devalued.

Mbah also said debating a return could scare investors. He said the country should instead focus on making the gains reach households, create jobs and build wealth.

He said the old subsidy mainly benefited wealthy Nigerians, while the government now uses savings to target the poor through cash transfers. He also cited a programme aimed at giving seed capital to 1,000 people per ward nationwide.

Employers want relief, not just savings

The Nigeria Employers' Consultative Association (NECA), which speaks for organised businesses, also backed keeping the reform. But it said success should be judged by what Nigerians and businesses feel, not by how much revenue government collects.

NECA Director-General Adewale-Smatt Oyerinde said the reform remains important for restoring fiscal sustainability and freeing resources for development. He added, however, that it loses its justification if the savings do not lead to better living standards, lower production costs and jobs.

"Fiscal savings and increased government revenue mean little to the average citizen if businesses continue to struggle, jobs remain threatened and households are increasingly unable to meet their basic needs," Oyerinde said in a statement on Tuesday.

NECA put petrol at an average of about ₦1,400 per litre and diesel at about ₦1,900 per litre in some locations. It said these costs are raising operating expenses, especially for micro, small and medium enterprises, and putting jobs at risk.

The association urged the Federal Government to fund targeted social protection properly and make it transparent and data-driven. It also called for federal, state and local governments to work together so that savings and higher crude oil revenue produce visible results.

NECA listed electricity, roads and transport, agriculture, healthcare, education and industrial infrastructure as priorities. It said reliable, affordable power would cut production costs and help manufacturers compete.

What happens next

The sources do not indicate any plan to change the subsidy policy. The debate now centres on how the savings are spent and whether relief reaches households and small businesses.