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Former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, has defended his plan to restore fuel subsidy if elected president in 2027, saying the policy is intended to reduce the cost of petrol, transportation and other essential goods.
Atiku said his proposal is fundamentally different from the subsidy system that previously supported imported petroleum products. According to him, his plan would focus on production rather than importation, with government support directed at crude oil refined within Nigeria.
The former vice president explained that under the proposed model, qualifying Nigerian refineries would have access to crude at a lower cost through a transparent and independently monitored mechanism. The objective, he said, would be to enable domestic refineries to produce petrol more cheaply and pass the resulting savings to consumers.
Atiku argued that supporting local production would help Nigeria reduce its dependence on imported petroleum products while strengthening domestic refining, creating jobs and encouraging further investment in the downstream petroleum sector.
He also sought to distinguish his proposal from any arrangement that would force private refineries to sell fuel below their production costs.
His comments followed concerns raised by the Dangote Refinery over government imposed petrol prices and the potential impact of such interventions on refinery margins. Atiku said the concerns were legitimate, but argued that they did not contradict his production subsidy proposal.
According to Atiku, government should not simply dictate a politically convenient pump price and leave private refiners to absorb the resulting losses. Instead, he said any additional relief provided to consumers beyond savings generated from cheaper crude should be transparently funded and properly accounted for.
The proposed scheme, he said, would include safeguards such as a fiscal ceiling, maximum support per barrel, independent verification of crude supplied, electronic tracking of crude intake and refined output, domestic supply obligations, transparent pricing and independent audits.
Atiku also criticised the administration of President Bola Tinubu over the rising cost of fuel, transportation, food and other necessities, arguing that Nigerians have borne a significant burden since the removal of petrol subsidy.
He maintained that the country should not have to choose between protecting the viability of domestic refineries and making fuel affordable for consumers.
The ADC presidential candidate said his proposed policy would instead seek to achieve both objectives by lowering the cost of domestic production while ensuring that refiners maintain legitimate operating costs and commercial margins.
He urged Nigerians to view the proposal as a shift from subsidising imported petrol to supporting Nigerian production.
Atiku’s position adds fuel to the growing economic debate ahead of the 2027 presidential election, with the cost of living and the future of petrol pricing expected to remain major issues for voters.
