Why Nigeria Should Consider Productive Subsidies Instead of Consumption Subsidies

I support Atiku’s position on reintroducing subsidies, but the focus should be on productive sectors rather than broad consumption. China’s industrial policy shows how subsidies can support growth through cheap financing, direct grants, tax concessions, subsidised land, and lower-cost inputs. These measures help targeted industries such as manufacturing, electric vehicles, batteries, solar energy, and technology scale up before profitability follows. Nigeria can learn from this model by supporting local production, agriculture, power, transport, and strategic industries. A well-designed subsidy should create jobs, reduce production costs, and strengthen long-term economic sustainability. In Nigeria, however, religious subsidies appear easier to sustain than serious investments in productive sectors.

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