The All Progressives Congress Presidential Campaign Council has asked Atiku Abubakar, the African Democratic Congress presidential candidate, to provide details on his proposal to reintroduce fuel subsidy. Dele Alake, the council's spokesperson, stated that Atiku's proposal raises questions about the legal, fiscal, and operational framework behind it. Alake cited Section 205(1) of the Petroleum Industry Act, 2021, which provides that wholesale and retail prices of petroleum products should be based on unrestricted free-market conditions.
Atiku had reaffirmed his commitment to restoring a targeted fuel subsidy if elected president in 2027, citing support for local production, reduced energy costs, and restored purchasing power for Nigerians. However, Alake argued that the proposal is unclear on how government would impose conditions to translate production support into lower pump prices. The Nigerian Midstream and Downstream Petroleum Regulatory Authority also stated that it does not fix petrol pump prices, with government intervention restricted to exceptional market failure cases.
Alake demanded that Atiku explain whether refineries receiving the proposed subsidy would sell petrol at a government-prescribed price, and if so, identify the legal framework for it. He also asked Atiku to clarify how public support to refiners would guarantee lower prices at filling stations. The APC PCC spokesperson questioned the cost and funding mechanism for the proposed intervention, warning that preferential pricing of crude for domestic refineries could reduce Federation revenue.
The potential cost of Atiku's proposal could run into trillions of naira annually, depending on the level of crude discount, volume covered, and whether the intervention applies to the entire crude barrel or only petrol sold domestically. Alake listed several issues that Atiku should clarify, including the proposed subsidy rate, annual spending ceiling, volume of crude or petrol covered, funding source, and mechanism for guaranteeing lower pump prices.
Alake also questioned Atiku's current position in light of his previous support for downstream deregulation. In November 2022, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal. However, he has since stated that he intends to restore a targeted subsidy if elected. Atiku wrote on August 25, 2026, that his position on subsidy "has not changed" and that he would restore it to cushion citizens from economic hardship.
The APC PCC linked the subsidy debate to Nigeria's downstream petroleum reforms, noting that diesel was deregulated in 2003 and aviation fuel moved to market pricing, while petrol remained under the subsidy regime until its removal by the Tinubu administration. The government has focused on alternative energy, particularly compressed natural gas and electric mass transit, to reduce transportation costs. Over 120,000 vehicles have been converted to CNG, with infrastructure expansion in collaboration with state governments.
The APC PCC spokesperson urged Atiku to publish a detailed policy document and obtain an independent legal and fiscal assessment of the proposed subsidy. Alake emphasized that any proposed intervention in the downstream sector must be lawful, transparent, properly costed, and capable of delivering measurable benefits to consumers. Until Atiku provides details on funding and implementation, the plan remains without a clearly defined legal and operational framework.
Key points
- The Tinubu campaign has challenged Atiku Abubakar to explain the framework behind his proposal to reintroduce fuel subsidy.
- Atiku's proposal raises concerns over legality and funding, with the APC PCC citing Section 205(1) of the Petroleum Industry Act, 2021.
- The APC PCC has urged Atiku to publish a detailed policy document and obtain an independent legal and fiscal assessment of the proposed subsidy.
