The Presidential Campaign Council of the All Progressives Congress (APC) has challenged former Vice President Atiku Abubakar to provide details of the legal, fiscal, and operational framework for his proposed subsidy on locally refined petrol. Atiku, the presidential candidate of the African Democratic Congress (ADC), has reaffirmed his intention to restore a targeted petrol subsidy if elected president in 2027. The APC council spokesman, Dele Alake, said the proposal required clarification, particularly on whether refiners benefiting from the intervention would be required to sell petrol at government-prescribed prices.
The Petroleum Industry Act (PIA) 2021 provides for market-determined wholesale and retail prices of petroleum products, Alake noted. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also stated that petrol pump prices were determined by market forces and that the regulator did not fix prices under the PIA, except where statutory conditions for intervention were met. The APC council asked Atiku to disclose the estimated cost of the proposed intervention and its source of funding, as well as the mechanism for passing the benefit to consumers.
Atiku had previously suggested that the policy could involve supplying crude oil to domestic refineries at preferential prices. The APC council argued that any discount granted on crude for domestic refining would have implications for government revenue. The council questioned what it described as a shift in Atiku's position on downstream petroleum deregulation, citing his 2022 campaign position, when Atiku described the petrol subsidy regime as fraudulent and pledged to complete its removal.
The APC council further asked Atiku to explain how the proposed arrangement would differ from the previous subsidy regime and how it would address concerns historically associated with fuel subsidy administration. The council noted that downstream petroleum reforms predated the current administration, with diesel and aviation fuel moved towards market pricing during the Olusegun Obasanjo administration, in which Atiku served as vice president.
On the current administration's response to high energy and transportation costs, the APC council highlighted the Federal Government's investment in compressed natural gas (CNG) and electric mobility. President Bola Tinubu said over 120,000 vehicles had been converted to CNG over the past three years, while more than 400 certified conversion centres and over 90 CNG refuelling stations were operating nationwide.
The APC council said the government would continue to pursue alternatives to reduce Nigeria's exposure to international energy-price shocks, rather than return to the previous petrol subsidy model. The council acknowledged the pressure that higher petrol prices have placed on households and businesses but said any intervention should be legally grounded, transparent, and properly costed.
The council maintained that until Atiku provides details of his proposed subsidy, questions would remain over the proposed subsidy's cost, legal framework, and ability to guarantee lower petrol prices. Alake urged Atiku to publish a detailed policy document setting out the legal and fiscal basis of his proposed subsidy, as well as the mechanism through which the intervention would benefit consumers.
Key points
- The APC campaign council challenges Atiku Abubakar to provide details of his proposed petrol subsidy plan, citing concerns over its legal, fiscal, and operational framework.
- Atiku's proposal has raised questions about its potential impact on pump prices and government revenue.
- The APC council advocates for a lawful, transparent, and properly costed intervention in the downstream sector.
