A professor has raised concerns over the possibility of Nigeria returning to the fuel subsidy regime, warning that such a move could push up to 15 northern states into severe financial crisis within three months.
According to the academic, reinstating petrol subsidy would significantly reduce the funds available for distribution through the Federation Account Allocation Committee (FAAC), a major source of revenue for many states across the country.
He explained that several northern states depend heavily on federal allocations to pay salaries, fund infrastructure projects, and provide essential public services. A reduction in these allocations, he argued, could leave many of them struggling to meet their financial obligations.
The professor further noted that subsidy payments would consume a substantial portion of government revenue, leaving less money for state governments and potentially worsening existing economic challenges.
His remarks have sparked fresh debate over Nigeria’s fuel subsidy policy, with supporters of subsidy removal insisting that the country cannot sustain the enormous cost, while critics argue that the removal has increased the cost of living for millions of Nigerians.
As conversations around fuel pricing and economic reforms continue, the warning highlights the difficult balance between protecting government revenue and easing the financial burden on citizens.
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