The All Progressives Congress Presidential Campaign Council (APC-PCC) has demanded that former Vice-President Atiku Abubakar explain the details of his proposed "production subsidy" for locally refined petrol. Atiku's plan, which could cost between N17 trillion and N21 trillion annually, has raised concerns about its implementation under the Petroleum Industry Act (PIA) 2021. The council's spokesman, Dele Alake, stated that Atiku must clarify how the proposal would operate, how it would be financed, and how it would translate into lower pump prices for consumers.
Atiku reiterated his proposal for a production subsidy at a press conference in Abuja on Friday, calling on President Bola Tinubu to reduce petrol and diesel pump prices. The subsidy debate has returned to the centre of the 2027 political discourse after Atiku said in August that he would restore petrol subsidy if elected. The APC-PCC's challenge comes as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that it does not fix petrol pump prices or issue administrative pricing templates.
The APC-PCC questioned the legal framework under which the government would impose price conditions on refiners receiving the proposed subsidy. Alake asked if Atiku's proposal would require refiners to sell petrol at a prescribed price, and if so, what the legal framework would be. He also asked how public support to refiners would guarantee lower prices at filling stations. The council demanded details of the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, source of funding, and safeguards against diversion, smuggling, and fraudulent claims.
According to Alake, the cost of the new subsidy could run as high as N17 or N21 trillion annually, depending on the discount size, volume covered, and whether the support applies to the entire barrel or only to petrol sold domestically. He stated that the assumptions behind the estimate needed to be clearly defined. The APC-PCC also asked Atiku to state whether amendments to the PIA would be required to implement the proposal, arguing that an appropriation by the National Assembly alone would not resolve all regulatory questions arising from the Act.
The APC-PCC sought to draw a distinction between Atiku's current proposal and his previous position on downstream deregulation. In November 2022, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal. However, on August 25, 2026, Atiku stated that he would restore the subsidy. The council challenged Atiku to explain how the proposed arrangement would avoid the abuse, scarcity, smuggling, and fiscal losses associated with the old subsidy regime.
The APC-PCC contrasted Atiku's proposal with the Tinubu administration's focus on alternative energy, particularly compressed natural gas (CNG) and electric mass transit. The council cited President Tinubu's directive to reduce transportation costs without returning to petrol subsidies. It noted that commuters in seven states and the Federal Capital Territory were already benefiting from reduced fares on CNG and electric-bus routes.
The council acknowledged the burden of high petrol prices on households and businesses but suggested that any de-escalation of the Middle East crisis could lower crude oil prices and consequently reduce petrol and diesel prices globally. Alake added that the NMDPRA was working with the Federal Competition and Consumer Protection Commission to address alleged price-gouging and with the Nigeria Customs Service to tackle smuggling.
Key points
- The APC-PCC challenges Atiku Abubakar to explain the details of his proposed N17trn-N21trn petrol subsidy plan.
- Atiku's proposal has raised concerns about its implementation under the Petroleum Industry Act (PIA) 2021.
- The APC-PCC contrasts Atiku's plan with the Tinubu administration's focus on alternative energy.
