The All Progressives Congress Presidential Campaign Council (APC-PCC) has criticized former Vice President Atiku Abubakar's proposed petrol production subsidy, describing it as an uncosted promise lacking a clearly identified legal and operational framework. The council's spokesman, Dele Alake, raised concerns in a statement, challenging Atiku to explain how his proposal would guarantee lower petrol prices for consumers and comply with the Petroleum Industry Act (PIA). Atiku had reiterated his proposal for a "production subsidy" for locally refined petrol to reduce pump prices.
Alake cited Section 205(1) of the PIA, which provides that unrestricted free-market conditions shall determine the wholesale and retail prices of petroleum products. He also referred to a statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which said it did not fix pump prices or issue administrative price templates except where statutory conditions for intervention were met. According to Alake, the regulator had stated that no such market failure had been declared, raising questions about the proposed subsidy.
The APC-PCC spokesman asked Atiku to explain whether refineries receiving the proposed subsidy would be required to sell petrol at a prescribed price. He requested that Atiku identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act. If no mandatory price condition was proposed, Alake asked Atiku to explain how public support to refiners would guarantee lower prices at filling stations.
The APC-PCC also questioned the financial implications of the proposed intervention, saying its cost could run as high as N17 trillion or N21 trillion annually. The council urged Atiku to clarify the proposed subsidy rate, annual spending ceiling, the volume of crude or petrol to be covered, and the source of funding. Additionally, the council demanded details of safeguards against diversion, smuggling, and fraudulent claims.
Alake argued that an appropriation by the National Assembly could authorise expenditure but would not, by itself, resolve every regulatory question arising under the PIA. He challenged Atiku to reconcile his latest position with his previous support for downstream deregulation, recalling Atiku's 2022 statement describing the petrol subsidy system as fraudulent and pledging to complete its removal.
The APC-PCC spokesman cited Atiku's 25 August 2026 post on X, in which the former vice president stated, "I will restore it!" Alake asked Atiku to explain how his proposed arrangement would avoid the abuse, scarcity, smuggling, and fiscal losses associated with previous subsidy regimes. The council's statement has sparked a fresh debate on the petrol subsidy regime in Nigeria.
The controversy surrounding Atiku's proposal highlights the complexities of Nigeria's petrol subsidy regime and the need for a clear and sustainable solution. As the country continues to grapple with the challenges of petrol pricing and subsidy, stakeholders are eagerly awaiting Atiku's response to the APC-PCC's concerns. The development is significant, given the impact of petrol prices on the economy and the lives of Nigerians.
Key points
- The APC-PCC criticizes Atiku's petrol production subsidy proposal, citing a lack of clarity on the legal framework and financial implications.
- Atiku's proposal raises questions about compliance with the Petroleum Industry Act and the potential for abuse and fiscal losses.
- The APC-PCC demands clarification on the proposed subsidy rate, annual spending ceiling, and safeguards against diversion and smuggling.
