…advocates phased subsidy removal for stability
Former Vice President Atiku Abubakar recently criticized President Bola Tinubu’s economic policies, particularly targeting the handling of Nigeria’s fuel subsidy, which he described as contributing to worsening economic hardship in Nigeria.
Alternatively, Atiku proposed different economic strategies that he claims would have mitigated these issues, emphasising that his own approach would have been more gradual and strategic, aimed at minimizing economic disruptions while fostering sustainable growth.
In his proposal, Atiku introduced an Economic Stimulus Fund (ESF) valued at $10 billion, with the goal of supporting micro, small, and medium enterprises (MSMEs) across Nigeria’s economic sectors. He stressed that MSMEs are vital to economic stability and job creation and that this fund would inject necessary capital to sustain these businesses amid challenges such as inflation and limited financing options.
According to Atiku, the ESF would have a ripple effect, stimulating local economies, generating employment, and helping Nigerians better manage the cost-of-living crisis. The fund would be accompanied by a “skills-to-job” programme aimed at reducing youth unemployment. This initiative would target a range of demographics, including graduates, early school leavers, and the many young Nigerians who are neither in education nor employment.
Atiku also proposed the establishment of an Infrastructure Development Unit (IDU) directly under the president’s office, tasked with overseeing and expediting infrastructure projects. This IDU would coordinate efforts across various government agencies to streamline and accelerate infrastructure initiatives, especially those involving private sector partnerships.
To fund these projects, he suggested creating a $25 billion Infrastructure Development Fund, primarily fueled by private investment. His goal was to promote transparency, efficiency, and accountability in infrastructure spending and to prioritize high-impact projects such as roads, energy, and public facilities.
Fuel subsidies became a central issue in Atiku’s critique, as he argued that the current administration’s swift and complete subsidy removal has backfired, leading to soaring fuel prices and further economic strain on the population. Although he has historically supported the eventual removal of subsidies, Atiku emphasized a phased approach that would minimize economic shock.
He referred to his tenure as Vice President, during which his administration began implementing gradual subsidy reductions, a method he believes allows citizens and businesses to adjust over time. This approach, he noted, has been used successfully in countries like Malaysia and Indonesia, which slowly increased fuel prices to reduce the impact on citizens. Atiku also focused on the need for greater accountability in public spending and state-owned enterprises (SOEs).
He proposed reviewing fiscal support provided to failing SOEs and reforming procurement processes to eliminate waste and corruption. Part of his agenda included the utilization of borrowed funds to ensure they are directed toward economically beneficial projects. By enhancing transparency and efficiency in public finance management, Atiku believes Nigeria could significantly reduce its fiscal shortage and improve overall economic stability.
In line with his focus on structural reforms, Atiku proposed privatizing Nigeria’s refineries as a solution to the country’s reliance on imported fuel. He highlighted Nigeria’s inefficiency within OPEC, where it ranks low in refining capacity utilization and the percentage of crude oil refined domestically. Atiku’s goal was to see Nigeria refine at least 50 percent of its current crude oil output, aiming to eventually export 50 percent of refined products to neighboring West African nations.
Such a move, he argued, would not only improve Nigeria’s energy independence but also generate additional revenue through exports to the Economic Community of West African States (ECOWAS). Ultimately, Atiku’s proposed economic agenda reflects his commitment to a more inclusive, transparent, and sustainable approach to governance.
He has called on the current administration to address economic hardships faced by Nigerians, which he argues are worsened by inconsistent and unclear policies on subsidies, fuel pricing, and foreign exchange. He stressed that leadership accountability and policy transparency are essential to regaining the public’s trust and stabilizing Nigeria’s economy for long-term growth.
