Senior Special Assistant to President Bola Tinubu on Digital and New Media, O’tega Ogra, has described former Vice President Atiku Abubakar’s proposed petrol subsidy model as a return to the same system that previously created loopholes and financial burdens for Nigeria.
Speaking during an interview on ARISE News on Monday, Ogra said the Federal Government was not rattled by Atiku’s proposal, stating that the former Vice President had failed to provide sufficient details on how the policy would work.
According to him, Atiku had not stated the proposed price caps, the quantity of crude to be allocated to refineries, the source of the crude or the estimates behind the programme.
Ogra said calculations based on current crude prices put the potential cost of the proposed subsidy between ₦19.1 trillion and ₦22.2 trillion annually.
He emphasized that moving the subsidy from the point of consumption to the supply of crude would not fundamentally change the system.
“A pig that you dress in white is still a pig. It’s as simple as that. That you move the subsidies from the pump to the barrel, you’re just doing the same invisible subsidy program.”
Ogra said the previous subsidy regime had created significant opportunities for abuse, recalling that the government had budgeted ₦250 billion for the programme in 2012 but ended up with receipts of about ₦3.5 trillion.
He questioned how the proposed model would prevent similar loopholes, particularly because local refineries do not rely exclusively on Nigerian crude.
According to him, refineries may combine Nigerian crude with crude imported from other countries and also export some refined products, making it difficult to determine how much subsidised Nigerian crude ultimately benefits Nigerians.
Ogra said the government would therefore need to establish how much of the subsidised crude goes into products consumed domestically and how much ends up being exported.
He also criticised Atiku over what he described as repeated changes in his position on the subsidy proposal.
Ogra said, “He has flip-flopped on it four times already in one week,” arguing that Nigerians were beginning to see what he described as the problems associated with the proposal.
The presidential aide also disputed claims that the subsidy was removed abruptly in 2023, saying successive administrations had gradually reduced the programme before its final removal.
According to him, the process began during Atiku’s tenure as Vice President and continued under subsequent administrations, eventually culminating in the 2023 Fiscal Act.
He said the legislation had already provided for subsidy payments only until June 2023.
“So, the subsidy program would have ended in June regardless of whether President Bola Ahmed Tinubu said the subsidy is gone, there is no money for it.”
Ogra acknowledged that the removal of the subsidy should have been staggered, particularly because of the immediate impact of the policy on consumers.
“Honestly, Rotus, I agree with you. The subsidy should have been staggered.”
He said the administration was now focused on cushioning the impact of its economic reforms through social intervention programmes and transportation initiatives.
On conditional cash transfers, Ogra said the government had audited and revalidated the National Social Register after concerns were raised about the credibility of the data.
He said beneficiaries had subsequently been linked to wallets connected to their National Identification Numbers and Bank Verification Numbers to improve accountability and reduce leakages.
Ogra also defended the government’s Compressed Natural Gas initiative, saying more than 120,000 vehicles had already been incorporated into the programme through subsidised conversion kits or full CNG vehicles.
He said wider adoption of CNG, particularly along strategic transport corridors, would help reduce transportation costs.
Ogra maintained that the government remained focused on ensuring that the benefits of its economic reforms eventually reached Nigerians at the grassroots.
Ojo Triumph
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