The battle for the 2027 presidency in Nigeria has intensified as former vice president Atiku Abubakar and the All Progressives Congress Presidential Campaign Council (APC-PCC) exchanged sharp words over President Bola Tinubu's absence at the United Nations General Assembly and Atiku's proposal to introduce a production subsidy for locally refined petrol. The latest exchange occurred in Abuja, with the APC-PCC challenging Atiku to explain the framework of his proposed petrol subsidy. Atiku had questioned Tinubu's decision not to attend the 81st session of the United Nations General Assembly in New York.
Atiku's criticism of Tinubu was contained in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu. Atiku argued that while Vice President Kashim Shettima could represent Nigeria, repeated presidential absence from the annual global diplomatic gathering raised questions about Nigeria's diplomatic engagement and the opportunities available to the country. The UNGA provides opportunities for heads of government to hold bilateral meetings, pursue investment and trade partnerships, negotiate development financing, and advance their countries' interests.
Atiku further questioned reported expenditure on American lobbyists, asking why Nigeria would spend millions of dollars on lobbying efforts in the United States while the president repeatedly stayed away from the UN gathering in New York. He also raised questions about Tinubu's previous legal proceedings in the United States, citing a 1993 forfeiture case involving funds associated with the president. Atiku acknowledged that he was not alleging that Tinubu was legally barred from entering the United States but asked the presidency to state whether any legal, diplomatic, medical, or personal impediment was responsible for the president's absence.
The APC-PCC responded to Atiku's petrol subsidy proposal, demanding details of the proposed production subsidy for locally refined petrol. Atiku had reiterated his proposal at a press conference in Abuja, arguing that targeted government support for domestic refining could reduce production costs and ultimately bring down petrol prices. The APC-PCC said the proposal raised fundamental questions about its compatibility with the Petroleum Industry Act (PIA) 2021, its potential cost to government, and how any reduction in refinery costs would translate into lower pump prices for consumers.
The APC-PCC cited Section 205(1) of the PIA, which provides that wholesale and retail prices of petroleum products should be based on unrestricted free-market conditions. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) separately stated that it does not fix petrol pump prices or issue administrative pricing templates, adding that government intervention is restricted to exceptional circumstances involving formally established market failure. The APC-PCC challenged Atiku to explain whether refiners benefiting from his proposed intervention would be required to sell petrol at a prescribed price.
The APC-PCC demanded details of the proposed cost and funding mechanism, including the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, source of funding, mechanisms for preventing diversion and smuggling, safeguards against fraudulent claims, and whether amendments to the PIA would be required. The council also challenged Atiku to reconcile his current position with his earlier advocacy for downstream deregulation. According to the campaign council, Atiku had in 2022 described the petrol subsidy system as fraudulent and pledged to complete its removal.
The APC-PCC defended the Tinubu administration's approach to addressing transport costs, pointing to its compressed natural gas (CNG) and electric-bus initiatives. The council said the government had pursued alternative energy sources and vehicle conversions as part of efforts to reduce transportation costs rather than returning to a broad petrol subsidy regime. The council cited government figures on CNG vehicle conversions and reduced fares on some routes served by CNG and electric buses.
Key points
- Atiku Abubakar questions President Tinubu's absence at the UNGA
- APC-PCC challenges Atiku to explain framework of proposed petrol subsidy
- Atiku and APC-PCC exchange words over fuel subsidy proposal and Tinubu's UNGA absence
