Dr. Dele Alake, the Minister of Solid Minerals Development and spokesperson of the APC Presidential Council, has challenged former Vice President Atiku Abubakar's proposal for locally refined petrol to reduce pump prices. Alake questioned the legal basis of Atiku's proposal, which was made during a press conference on Friday. Atiku, the presidential candidate of the African Democratic Congress (ADC), suggested that locally refined petrol would reduce pump prices and urged President Bola Tinubu to slash the cost of diesel and petrol.
Alake, in a statement signed on Sunday, took a swipe at Atiku's proposal, stating that it raises important legal, fiscal, and practical questions that need to be answered. He referenced Section 205(1) of the Petroleum Industry Act 2021, which provides that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products. Alake asked Atiku to explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price.
According to Alake, if Atiku's proposal is allowed to proceed without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices. He also questioned how public support to refiners would guarantee lower prices at filling stations. Alake emphasized that Atiku must disclose the cost of his proposal and how he would fund it, as his earlier statement suggested that the intervention could take the form of preferentially priced crude for domestic refineries.
Alake countered Atiku's proposal, stating that any discount on crude would reduce the value accruing to the federation and, consequently, the revenue available to the federal, state, and local governments. This, he said, would trigger afresh the fiscal crisis that made 27 states unable to pay salaries and pensions before President Tinubu assumed office in 2023. Alake urged Atiku to provide Nigerians with a detailed policy document and an independent legal and fiscal analysis of his proposal.
Until Atiku provides the necessary details, Alake said his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework. Alake also referenced President Olusegun Obasanjo's book, My Watch, which described Atiku's 'propensity for poor judgment.' Alake's statement has sparked a fresh debate on the proposal, with many Nigerians eagerly awaiting Atiku's response.
Atiku's proposal has been met with skepticism by many, who question its feasibility and potential impact on the country's economy. The proposal has also raised concerns about the potential for subsidy scams and the impact on the country's revenue. As the debate continues, Nigerians are waiting to see how the issue will be resolved and what impact it will have on the country's economy.
The Minister of Solid Minerals Development emphasized that the issue requires careful consideration and a thorough analysis of its potential implications. He urged Atiku to provide a clear and detailed explanation of his proposal, including its legal and fiscal implications. The issue has sparked a heated debate, with many stakeholders weighing in on the potential benefits and drawbacks of Atiku's proposal.
Key points
- Dr. Dele Alake challenges Atiku Abubakar's proposal for locally refined petrol, questioning its legal basis and potential implications.
- Alake references Section 205(1) of the Petroleum Industry Act 2021, which provides that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products.
- Atiku's proposal has sparked a fresh debate on the issue, with many Nigerians eagerly awaiting his response.
