Obi Demands Transparency on Subsidy Savings and Loan Accounts

Peter Obi has renewed his demand for subsidy savings accountability from the federal government, challenging President Bola Tinubu to publish a comprehensive breakdown of funds saved since the removal of petrol subsidies in May 2023 alongside details of external borrowing that has reportedly surpassed $100 billion. The former Anambra governor and 2023 presidential candidate of the Labour Party made the call during a media engagement in Abuja this week, arguing that Nigerians deserve to know how much has been saved, where the money has gone, and why the country continues to borrow heavily despite the subsidy removal that was sold as a fiscal necessity.

Background of the Subsidy Removal Policy

When President Tinubu announced the end of petrol subsidies during his inauguration speech on 29 May 2023, the administration framed the decision as unavoidable. The argument was straightforward: the subsidy regime, which had gulped trillions of naira annually, was unsustainable, riddled with corruption, and benefited mostly smugglers and wealthy consumers rather than the poor. The savings, officials promised, would be redirected into infrastructure, education, healthcare, and social safety nets for vulnerable Nigerians.

More than three years later, the narrative has shifted. While the pump price of petrol has risen from under ₦200 per litre to over ₦1,000 in many parts of the country, the promised dividends remain largely invisible to ordinary citizens. Roads across the federation remain in poor condition, public universities face recurring strikes over funding, and the health sector continues to lose personnel to migration. Meanwhile, the National Bureau of Statistics reports that multidimensional poverty affects over 130 million Nigerians, a figure that has barely moved despite the policy change.

The Borrowing Trajectory Since 2023

Data from the Debt Management Office shows that Nigeria’s total public debt stock has grown substantially since mid-2023. External debt alone has risen from approximately $41.6 billion in June 2023 to over $65 billion by mid-2026, with domestic debt also climbing sharply. When combined with new financing arrangements from multilateral institutions, bilateral creditors, and Eurobond issuances, the cumulative fresh borrowing approaches the $100 billion figure cited by Obi and other critics.

The government maintains that borrowing is necessary to fund critical infrastructure and buffer the economy against external shocks. The 2024 and 2025 budgets both ran significant deficits financed largely through debt. However, the lack of a clear, publicly accessible ledger linking subsidy savings to specific expenditures has fuelled suspicion that the funds are being absorbed by recurrent expenditure, debt servicing, or opaque allocations rather than transformative capital projects.

Obi’s Specific Demands

In his latest intervention, Obi outlined three core requests. First, a monthly publication of the differential between the landing cost of petrol and the pump price, multiplied by volume consumed, to establish the actual savings figure. Second, a project-by-project account of how those savings have been deployed, with geotagged locations, contractor details, and completion timelines. Third, a reconciliation of all new loan agreements signed since June 2023, including terms, interest rates, maturity profiles, and the specific projects each loan finances.

“Leadership is about trust,” Obi stated. “When you ask citizens to endure pain, you must show them the gain. The government cannot claim subsidy removal was for the people’s good while the people see only more hardship and more debt. The numbers must be opened for public scrutiny.”

Government Response and Institutional Mechanisms

The presidency has not issued a direct rebuttal to Obi’s latest challenge as of press time. However, senior officials have previously pointed to the Fiscal Responsibility Act, the Budget Office’s quarterly reports, and the Nigeria Extractive Industries Transparency Initiative (NEITI) audits as existing accountability channels. The Ministry of Finance also publishes monthly Federation Account Allocation Committee (FAAC) disbursements, which show distributions to federal, state, and local governments.

Critics argue these mechanisms are insufficient. FAAC reports show what is shared, not what is saved. NEITI audits focus on extractive revenues, not subsidy differentials. Budget implementation reports are often released months late and lack granular project tracking. Civil society organisations including BudgIT, Connected Development, and the Centre for Social Justice have repeatedly called for a dedicated subsidy savings tracker — a promise the administration made in late 2023 but has yet to deliver in a user-friendly format.

Economic Context and Public Sentiment

The demand for accountability arrives at a moment of acute economic pressure. Inflation remains above 30 percent year-on-year as of October 2026, the naira has depreciated significantly against major currencies, and real wages have collapsed for most workers. The minimum wage review concluded in 2024 brought nominal increases that have been largely eroded by price rises. Small businesses report closures due to energy costs and weak demand.

In this environment, the perception that billions in savings have vanished while debt mounts is politically potent. Social media discourse reflects deep scepticism. Hashtags demanding #ShowUsTheSavings and #WhereIsTheMoney have trended periodically since 2024. Labour unions have threatened industrial action over the same issue, though negotiations with the government have produced only partial commitments to transparency.

Comparative Perspectives from Africa

Nigeria’s struggle with subsidy transparency is not unique. Ghana’s 2023 fuel price liberalisation came with a promise to ring-fence savings for a new infrastructure fund, but parliamentary oversight committees have since flagged delays in operationalising the fund. Kenya’s 2024 subsidy removal on maize flour and fuel was accompanied by a public dashboard tracking savings deployment, though civil society groups say the data is incomplete. South Africa’s fuel levy adjustments are governed by a parliamentary committee that publishes quarterly allocation reports — a model some Nigerian lawmakers have urged the National Assembly to adopt.

These examples suggest that transparency is achievable when political will aligns with institutional design. The African Peer Review Mechanism’s 2025 report on Nigeria noted “progress in fiscal policy communication but significant gaps in citizen-facing accountability tools for major policy shifts.”

Legislative and Judicial Dimensions

The National Assembly has a constitutional role in approving borrowing plans and appropriating funds. Both chambers have held hearings on the debt profile and subsidy regime, but resolutions have often been non-binding. The Senate Committee on Finance and the House Committee on Appropriations have requested detailed breakdowns from the Ministry of Finance, with mixed compliance.

Legal avenues are also being explored. In early 2026, a coalition of civil society groups filed a Freedom of Information Act request seeking the subsidy savings ledger. The case is pending before the Federal High Court in Abuja. A judgment compelling disclosure would set a significant precedent for fiscal transparency in Nigeria’s Fourth Republic.

What Meaningful Accountability Would Look Like

Experts in public finance management suggest a credible accountability framework would include: a real-time digital dashboard showing monthly subsidy savings calculations; quarterly independent audits by the Auditor-General’s office published in full; a citizen’s guide explaining the numbers in plain language and major Nigerian languages; and a legislative requirement that any supplementary budget funded from savings or new borrowing must reference specific projects from the published pipeline.

The International Monetary Fund’s 2026 Article IV consultation report for Nigeria recommended “enhancing the transparency of fuel pricing mechanisms and establishing a clear fiscal rule for the use of subsidy savings.” The World Bank’s Nigeria Development Update echoed this, urging “a rules-based framework that locks savings into priority capital expenditure and social protection programmes.”

Political Implications for 2027 and Beyond

With the 2027 general elections approaching, the subsidy savings question is likely to feature prominently in political discourse. Opposition parties are already framing the issue as evidence of governance failure. The ruling All Progressives Congress (APC) will need to demonstrate tangible outcomes from the policy to defend its record. State governors, who receive a share of FAAC allocations, also face pressure to show how their portions of any savings have been used.

For Obi and the Labour Party, the demand reinforces a brand built on prudence, transparency, and data-driven governance. Whether it translates into electoral momentum depends on the party’s ability to organise around the issue beyond social media and elite circles, reaching voters in markets, farms, and informal settlements who feel the pinch daily.

Frequently Asked Questions

What exactly is the fuel subsidy savings figure the government claims to have made?

The federal government has not published a single, verified cumulative figure for savings since May 2023. Officials have cited varying monthly estimates in different forums, but no consolidated, audited total has been released for public verification.

How much has Nigeria borrowed since the subsidy removal?

According to Debt Management Office data, total public debt has risen from approximately ₦87 trillion in June 2023 to over ₦130 trillion by mid-2026. External debt stock grew from $41.6 billion to over $65 billion in the same period. New loan agreements with the World Bank, AfDB, bilateral partners, and Eurobond markets contribute to the cumulative borrowing figure cited by critics.

Are there existing laws requiring the government to publish this information?

The Fiscal Responsibility Act 2007 and the Freedom of Information Act 2011 both contain provisions for fiscal transparency and public access to financial records. However, enforcement has been inconsistent, and no specific regulation mandates a dedicated subsidy savings tracker.

What can ordinary citizens do to demand accountability?

Citizens can submit Freedom of Information requests to the Ministry of Finance and the Budget Office, engage their National Assembly representatives, support civil society organisations tracking public finance, and participate in public hearings on budget and debt matters. Collective pressure has historically moved the needle on transparency issues in Nigeria.

Source: Linda Ikeji’s Blog

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