Former Fidelity Bank chairman Mustafa Chike-Obi has criticised former Vice-President Atiku Abubakar’s proposal to restore petrol subsidy if elected president in 2027, describing the plan as “extremely naive.”

Speaking on the Policy Without Politics podcast, Chike-Obi said reintroducing the subsidy would amount to selling Nigeria’s crude-derived petrol below its market value and could consume a significant portion of the country’s foreign-exchange wealth.

He warned that subsidised petrol could be smuggled across Nigeria’s borders, forcing the government to introduce extensive price controls, monitoring and enforcement measures.

Chike-Obi said the previous subsidy system, under which NNPC bought petrol and sold it at a controlled price, was more efficient but still failed to deliver a sustainable solution.

Instead, he advocated targeted fuel vouchers for low-income Nigerians if government decides to provide any form of petrol subsidy. He suggested using an income test to identify eligible beneficiaries.

His co-host, Ken Ikpe, also opposed Atiku’s proposal, arguing that existing policies should be reviewed and improved rather than abandoned, while stressing the importance of policy continuity.