The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to clarify the legal and fiscal basis of his proposed "production subsidy" for locally refined petrol. Atiku, who is the candidate of the African Democratic Congress (ADC), had reiterated his plan to reduce petrol pump price and asked President Bola Tinubu to adopt the idea. The APC-PCC stated that the proposal raises important questions that Atiku must answer.
According to the APC-PCC, Section 205(1) of the Petroleum Industry Act (PIA) 2021 provides that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products. The Council cited this provision and asked Atiku to explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price. If so, Atiku should identify the legal framework under which the government would impose that price condition.
The APC-PCC also questioned how public support to refiners would guarantee lower prices at filling stations. Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices. The Council listed seven questions Atiku must answer, including subsidy rate, annual spending ceiling, volume of crude or petrol covered, source of funding, mechanism for lower pump prices, safeguards against diversion and smuggling, and whether PIA amendment would be required.
Atiku's proposal has been criticized for contradicting his previous support for deregulation. In November 2022, at the Lagos Business School, he described petrol subsidy as fraudulent and pledged to complete its removal. He chaired the committee that removed its first and second phases and promised to complete the process. However, on August 25, 2026, he announced his plan to restore subsidy.
The APC-PCC noted that President Tinubu's administration has focused on lower-cost alternatives like Compressed Natural Gas (CNG) and electric mass transit. Over 120,000 vehicles have been converted to CNG, and fare reductions of 31 to 83 percent have been achieved on routes served in seven states and the Federal Capital Territory (FCT). In contrast, Atiku's proposal is seen as a return to the subsidy era of debts, queues, and smuggling.
The Campaign Council emphasized that every downstream intervention must be lawful, transparent, properly costed, and capable of delivering measurable benefits. They urged Atiku to provide a detailed policy document and independent legal and fiscal analysis. The Council concluded that Nigeria will continue to move forward with a deregulated market that has supported increased investment in domestic refining.
The Dangote Petroleum Refinery has reached its nameplate capacity of 650,000 barrels per day and reportedly achieved 700,000 barrels per day during performance tests. The company has also launched an initial public offering targeting ₦2.1 trillion for expansion. The APC-PCC urged Nigerians to ignore politicians who want to return to the subsidy era.
Key points
- Atiku Abubakar's proposed production subsidy for locally refined petrol raises important legal, fiscal, and practical questions.
- The APC-PCC questions the consistency of Atiku's proposal with the Petroleum Industry Act 2021 and his previous support for deregulation.
- President Tinubu's administration has focused on lower-cost alternatives like CNG and electric mass transit, while Atiku's proposal is seen as a return to the subsidy era.
