The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged African Democratic Congress presidential candidate Atiku Abubakar to provide a detailed legal, fiscal and operational framework for his proposed “production subsidy” for locally refined petrol.
In a statement on Sunday, APC-PCC spokesman Dele Alake said Atiku’s proposal raised questions about its cost, legal basis and implementation under Nigeria’s deregulated downstream petroleum market.
Atiku had at a press conference in Abuja on Friday reiterated his proposal for a production subsidy applying to petroleum products refined in Nigeria and sold domestically, arguing that it would reduce pump prices while supporting local refining and employment. He said the intervention would operate within a fixed spending limit and be subject to National Assembly approval and independent audits.
The APC-PCC, however, cited Section 205(1) of the Petroleum Industry Act (PIA) 2021, which provides for wholesale and retail petroleum product prices to be determined by unrestricted free-market conditions.
It also referenced the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s position that it does not ordinarily fix pump prices or issue administrative pricing templates, except where statutory conditions permitting intervention are met. The regulator said no such market failure had been declared.
The campaign council consequently asked Atiku to explain how his proposed subsidy would translate into lower pump prices and whether implementing the plan would require changes to the PIA.
It also demanded details including the proposed subsidy rate, annual spending ceiling, volume of crude oil or petrol to be covered, funding source, safeguards against diversion and smuggling, and the mechanism for ensuring that government support resulted in lower prices for consumers.
The APC-PCC contrasted Atiku’s proposal with his previous support for downstream deregulation, recalling that he described the old petrol subsidy system as fraudulent in 2022 and pledged to complete its removal.
The council argued that a return to subsidy, even under a different structure, risked recreating problems it associated with the previous regime, including fiscal pressure, smuggling and the diversion of subsidised petroleum products.
“In contrast, Atiku is reaching into Nigeria’s past with another subsidy scheme that will enrich smugglers in particular. He has yet to tell Nigerians what it will cost or under what law it will operate,” the statement signed by Dele Alake said.
The council urged Nigerians to reject proposals it said could return the country to the old subsidy system, arguing that the government would continue with a deregulated market and increased domestic refining.
It cited the Dangote Petroleum Refinery, saying the facility had reached its 650,000-barrel-per-day nameplate capacity and reportedly achieved 700,000 barrels per day during performance tests. It also noted the refinery’s ongoing initial public offering aimed at raising about N2.1 trillion for expansion.
The APC-PCC acknowledged the pressure of higher petrol prices on Nigerian households, saying petrol had sold for about N830 per litre before the Middle East crisis pushed international crude oil prices above $100 per barrel.
It argued that a de-escalation of the crisis could reduce crude oil prices and consequently ease petrol and diesel prices in Nigeria and other markets.
The council said the NMDPRA was working with the Federal Competition and Consumer Protection Commission against price gouging and with the Nigeria Customs Service to combat the diversion of petroleum products across Nigeria’s borders.
It maintained that any intervention in the downstream petroleum sector should be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.
“Atiku should provide Nigerians with a detailed policy document and an independent legal and fiscal analysis of his proposal,” Alake said.
“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework.”
The APC-PCC also invoked former President Olusegun Obasanjo’s criticism of Atiku in his book, My Watch, describing the proposed policy as another example of what Obasanjo had characterised as Atiku’s “propensity for poor judgment.”
“For a start, we recommend that Atiku read the PIA, as he appears out of touch with reality and the oil sector’s current dynamics,” the statement added.
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