Former Vice President Atiku Abubakar’s proposed production-based fuel subsidy will reduce the cost of living, transportation and food prices, according to his Senior Special Assistant on Public Communication, Phrank Shaibu.
Speaking during an interview on ARISE News on Friday, Shaibu said the proposed subsidy model would differ from the previous regime because it would focus on domestic production rather than imported refined petroleum products.
“And with subsidized crude, you will produce and supply petroleum products to Nigerians, reduce the cost of living, reduce energy cost, reduce cost of transportation, reduce cost of food, reduce inflation.”
He said the previous subsidy architecture was centred on fuel imports, which created room for middlemen and unverifiable claims, while Atiku’s proposal would focus on local refineries and subsidised crude.
“What Atiku is proposing is simple, clear, and unambiguous. He’s saying, no, we have to cut down waste, and in cutting down waste, I want a reform and subsidy placed on production.”
Shaibu said the proposed model would involve using technology to monitor crude production and ensure petroleum products are supplied to Nigerians at a lower cost.
“We will encourage local refineries. We will subsidize crude.”
He emphasized that reducing fuel costs would have wider economic benefits by lowering transportation and food costs and easing inflationary pressures.
“You produce the crude, you produce the oil, produce the fuel, you supply the Nigerian people at a cheaper cost.”
Ojo Triumph
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