Labour Party (LP) presidential candidate Peter Obi has called the current petrol subsidy system in Nigeria “organised crime.”

Obi made this statement on Sunday at the Channels Television town hall meeting.

Between 2013 and 2021, Nigeria would have paid a total of N6.210 trillion in subsidies, commonly known as under-recovery gap.

The federal government stated last year that, beginning in June of 2023, it will no longer provide subsidies.

If elected, the LP candidate for president has promised to immediately halt the payments.

“They have removed it. That is what they’ve done. But I can assure you, it will go immediately. Subsidy, I have said it before is organised crime and I will not allow it to stay a day longer,” Obi said.

“What they are telling you is not what it is. Half of what is being mentioned is not subsidy. First is that we consume the quantity that is not supposed to be consumed here.

“We are the same population as Pakistan. They consume below 50 percent of what we consume.

“So, the first half, I will remove it so we can save the money.”

After criticizing the country’s public debt stock, the LP candidate suggested diverting funds from the subsidy on petrol to fund social programs instead.

“Look at this year’s budget. Education, which is the highest since this government came, is about N2 trillion. Health, which is the highest since this government came, is about N1.5 trillion. Then infrastructure, which is roads and everything, is about N1 trillion,” he said.

“These three critical development areas are receiving N4.5 trillion. Subsidy is N3.6 trillion half year. So, if it’s a full year, it is about N7 trillion. Which country will invest more in subsidy than education and health and even roads? It doesn’t make sense.”

YNaija