The All Progressives Congress Presidential Campaign Council (APC PCC) has responded to the African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, over his proposed removal of fuel subsidy. In a statement by its spokesperson, Dele Alake, the APC PCC urged Atiku to explain the legal and fiscal basis of his proposal. The council acknowledged the pressure higher petrol prices are placing on Nigerian families but assured that the President Bola Tinubu-led administration will continue to implement policies to support Nigerians.
Atiku had reiterated his proposed "production subsidy" for locally refined petrol to reduce pump prices, requesting President Tinubu to slash the cost of diesel and petrol at the pump. However, the APC PCC claimed that the proposal raises important legal, fiscal, and practical questions that Atiku must answer. According to the council, Section 205(1) of the Petroleum Industry Act 2021 provides that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products.
The APC PCC questioned whether a refinery receiving Atiku's proposed subsidy would be required to sell petrol at a prescribed price. If so, the council asked Atiku to identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act. If not, the council asked how public support to refiners would guarantee lower prices at filling stations.
The APC PCC also requested Atiku to disclose the cost of his proposal and how he would fund it. Atiku's earlier statement suggested that the intervention could take the form of preferentially priced crude for domestic refineries. However, the council noted 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.
Based on publicly reported refinery throughput and domestic petrol-supply figures, the cost of Atiku's proposal could run as high as N17 or N21 trillion annually. The APC PCC requested that Atiku clearly define the assumptions behind his proposal, including the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, and source of funding.
The council also asked Atiku to reconcile his latest position with his previous support for downstream deregulation. In November 2022, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal. However, on August 25, 2026, he announced that he would restore subsidy in another form. The APC PCC accused Atiku of reaching into Nigeria's past with another subsidy scheme that would enrich smugglers.
President Tinubu's administration has focused on expanding lower-cost alternatives through compressed natural gas and electric mass transit. The government has converted over 120,000 vehicles to CNG, with thousands more converted privately. The administration is working with state governments to extend these savings nationwide. The APC PCC acknowledged the pressure that higher petrol prices place on Nigerian families and assured that the Tinubu administration will continue to implement policies to support Nigerians.
Key points
- The APC PCC has questioned Atiku's proposal to remove fuel subsidy, citing concerns over legality and fiscal basis.
- Atiku's proposal could cost as high as N17 or N21 trillion annually.
- The Tinubu administration has focused on expanding lower-cost alternatives through compressed natural gas and electric mass transit.
