The APC-PCC has questioned the feasibility of Atiku's proposal, citing Section 205(1) of the Petroleum Industry Act (PIA) 2021, which provides for market-based pricing of petroleum products. The council's spokesman, Mr Dele Alake, stated that Atiku's proposal raises important legal, fiscal, and practical questions that need to be addressed. Atiku had proposed a production subsidy for domestic refineries to reduce pump prices of petrol and diesel.
The APC-PCC has demanded details of the proposed subsidy rate, spending ceiling, volumes covered, funding source, and safeguards against smuggling, diversion, and fraudulent claims. The council claimed that the intervention could cost between N17 trillion and N21 trillion annually, depending on the crude discount and volumes covered. This could trigger a fiscal crisis, as it would reduce revenues accruing to the Federation Account and funds available to the federal, state, and local governments.
Atiku's proposal has been met with criticism, with the APC-PCC accusing him of shifting from his earlier support for downstream deregulation. In November 2022, Atiku described the old subsidy regime as “fraudulent” and vowed to complete its removal. However, in August 2026, he pledged to restore the subsidy. The APC-PCC has asked how the model would avoid the abuse, scarcity, smuggling, and fiscal losses of the old regime.
The APC-PCC has contrasted Atiku's proposal with the Tinubu administration's expansion of compressed natural gas (CNG) and electric mass-transit programmes. The government has preferred cheaper alternative-energy transportation to a return to subsidy, with over 120,000 vehicles converted to CNG and commuters in seven states and the Federal Capital Territory recording fare reductions of between 31 and 83 per cent.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that it does not administratively fix pump prices and is working with the Federal Competition and Consumer Protection Commission (FCCPC) against alleged price-gouging and with the Nigeria Customs Service to curb cross-border diversion of petroleum products. The APC-PCC has urged Atiku to publish a detailed policy document and independent legal and fiscal analyses of the proposal.
The council has advised Atiku to study the PIA, insisting that any intervention must be lawful, transparent, properly costed, and capable of delivering measurable benefits to consumers. President Bola Ahmed Tinubu has urged Nigerians to ignore politicians who want to drag the country back to the subsidy era, which could lead to mounting debt, petrol queues, and payments pocketed by smugglers.
Key points
- The APC-PCC has questioned the feasibility of Atiku's proposed production subsidy for locally refined petrol, citing potential legal and fiscal issues.
- Atiku's proposal has been criticized for potentially triggering a fiscal crisis and for shifting from his earlier support for downstream deregulation.
- The APC-PCC has urged Atiku to publish a detailed policy document and independent legal and fiscal analyses of the proposal.
