The Presidency of Nigeria has responded to former vice-president Atiku Abubakar's proposal for a targeted petrol production subsidy, describing it as economically unrealistic. Special adviser to President Bola Tinubu on media and public communications, Sunday Dare, issued a statement criticizing Atiku's plan, warning that it could revive financial abuses associated with Nigeria's former subsidy regime. Atiku, the African Democratic Congress presidential candidate, had criticized the Nigerian National Petroleum Company's 30-day petrol discount and the federal government's price modulation framework.
According to Sunday Dare, Nigeria lacks sufficient government-controlled crude oil to sustain Atiku's proposal. The country produces approximately 1.8m barrels of crude daily, but existing joint venture agreements, production-sharing contracts, and other obligations leave the government with fewer than 700,000 barrels of unencumbered crude. Dare argued that proposing a blanket 'targeted production subsidy' on crude without the physical, unencumbered volume to back it up is pure economic illiteracy.
The Presidency warned that Atiku's proposed arrangement could encourage fraudulent transactions, undermine transparency, and impose additional pressure on public finances. Dare defended the government's intervention, stating that NNPC Retail's temporary petrol discount was designed to cushion consumers against rising international oil prices rather than restore the abolished subsidy. He emphasized that the discount was not a handout to opaque import cartels.
The Presidency also defended the negotiated N1,350-per-litre ex-gantry ceiling, describing it as a temporary mechanism intended to stabilise prices. Dare said the administration was expanding compressed natural gas infrastructure, supporting domestic refining, and introducing measures to protect consumers from volatile energy costs. These efforts aim to mitigate the impact of rising international oil prices on Nigerian consumers.
According to Dare, removing petrol subsidies and unifying exchange rates had freed substantial government revenues for distribution to states and local governments. The presidential aide criticised Atiku's reported description of President Tinubu as a "dull student", questioning the former vice-president's credentials in comparison with the president's. This criticism suggests that the Presidency is prepared to engage in a public debate with Atiku over their respective economic policies.
The Presidency insisted that President Tinubu's economic policies are designed to deliver long-term stability rather than short-term political gains. The administration's policies aim to promote sustainable economic growth, transparency, and accountability in the management of Nigeria's resources. By defending its policies, the Presidency is signalling its commitment to implementing its economic agenda.
Atiku's response to the latest criticism from the Presidency was not included in the statement. The public exchange between the two sides highlights the ongoing debate over Nigeria's economic policies, particularly with regard to petrol subsidies and price modulation. The disagreement underscores the challenges facing the government in balancing the need for economic stability with the demands of various stakeholders.
Key points
- The Presidency dismisses Atiku Abubakar's targeted petrol production subsidy plan as economically unrealistic.
- Nigeria lacks sufficient government-controlled crude oil to sustain Atiku's proposed subsidy plan.
- The Presidency defends its economic policies, including the removal of petrol subsidies and price modulation framework.
