Rabiu Kwankwaso, the vice-presidential candidate of Nigeria's Democratic Congress (NDC), has disclosed that the party would consider government intervention to reduce petrol prices. This includes investing in refineries and other measures aimed at lowering production costs. Kwankwaso made the disclosure while discussing the fuel subsidy debate and different positions being taken by major opposition figures ahead of the 2027 presidential election.
The former Kano State governor said the NDC would pursue its own approach to making petrol more affordable, even though its presidential candidate, Peter Obi, has publicly opposed a return to the traditional fuel subsidy regime. Kwankwaso's comments came amid renewed debate over fuel prices after former Vice President Atiku Abubakar proposed a targeted production subsidy for petroleum products refined in Nigeria.
Atiku has argued that government intervention should be directed towards domestic refining rather than subsidising imported petroleum products. He proposed safeguards, including budgetary limits, transparency, and independent auditing of the programme. Atiku intensified his campaign for government intervention in the petrol market, arguing that high energy costs have contributed to increased transportation, food, and business expenses.
Kwankwaso, while speaking during an interview with Arise TV, was asked whether the NDC would face difficulties campaigning in parts of the North-West where support for a return of fuel subsidy remains an important issue. He rejected the suggestion that the party had no answer to the subsidy question, saying, "We are bringing subsidy in our own way."
When asked how the party intended to achieve that objective, Kwankwaso pointed to increased investment in domestic refining. He argued that if private individuals could establish refineries in Nigeria, there was no reason the government could not also invest in refining capacity where necessary. Kwankwaso said the minimum requirement is for people across the country to buy fuel at a reasonable price.
Kwankwaso criticised the manner in which President Bola Tinubu removed the petrol subsidy after assuming office in May 2023. Tinubu announced the policy during his inauguration on May 29, 2023, when he declared that "subsidy is gone." The decision immediately changed the fuel pricing structure and was followed by a sharp increase in petrol prices and transportation costs.
The NDC party's approach to fuel subsidy and investment in domestic refining is distinct from the old import-based subsidy system. The party aims to put the price of oil down, and their proposal has been influenced by Atiku's targeted production subsidy plan. The ADC candidate's plan supports petroleum products refined within Nigeria, rather than imported fuel, and is subject to a spending ceiling, legislative approval, and independent audits.
Key points
- The NDC party considers government intervention to reduce petrol prices.
- The party's approach involves investing in domestic refining.
- The NDC's plan is distinct from the old import-based subsidy system.
