The African Democratic Congress (ADC) has clarified its presidential candidate, Atiku Abubakar's plan to subsidise crude oil for local refineries. According to Dr Uche Diala, a spokesperson for the ADC Presidential Campaign Council, the policy aims to lower the cost of crude oil for local refiners by selling a portion of Nigeria's crude oil at a discounted rate. This move is designed to support domestic refineries without providing free crude oil or subsidies on imported petroleum products.
Dr Diala explained that the proposed production subsidy would allow participating refineries to purchase crude below the international market price. He emphasized that the policy is not about giving refineries free crude oil but about selling it at a reduced cost. The ADC spokesperson made these clarifications during an interview on Channels Television's Sunrise Daily. He highlighted that the policy's goal is to ensure Nigerians can afford to consume and live.
The sustainability of the proposal depends on several factors, including the volume of crude available for domestic refining after meeting joint-venture commitments and other contractual obligations. Dr Diala noted that the Petroleum Industry Act provides for domestic crude supply and that implementing the proposed subsidy would require reviewing existing arrangements, including forward-sale agreements. This review would help determine the feasibility of the policy.
To sustain the policy, Dr Diala emphasized the need to increase crude oil production. He cited Nigeria's 2026 budget benchmark of 1.8 million barrels per day, stating that the country can raise production above current levels to support the initiative. Currently, Nigeria produces about 1.6 million barrels a day, and increasing this would help ensure a steady supply for domestic refineries.
Dr Diala also addressed allegations by the All Progressives Congress (APC) that ADC workers had gone unpaid for several months. He described the allegation as fabricated, insisting that ADC staff receive their salaries. Diala offered to make the party's payroll records available to journalists upon request, questioning the APC's moral authority to demand such records.
On the 2027 presidential election, Dr Diala expressed confidence that Atiku Abubakar would emerge victorious. He stated that Atiku would accept the outcome if he lost a free and fair contest. As a democrat, Atiku is expected to respect the electoral process, and his campaign is focused on winning through the support of Nigerians.
The ADC's proposal to subsidise crude oil for local refineries is part of its broader strategy to support Nigeria's economy and ensure energy security. By making crude oil more affordable for local refiners, the party aims to reduce the cost of petroleum products for consumers. The implementation of this policy would depend on various factors, including the review of existing agreements and the increase in crude oil production.
Key points
- Atiku Abubakar plans to sell crude oil to local refineries at a discounted rate as part of a proposed production subsidy.
- The policy aims to lower the cost of crude oil for local refiners without providing free crude oil or subsidies on imported petroleum products.
- The sustainability of the proposal depends on increasing crude oil production and reviewing existing agreements.
