Atiku Abubakar
Susan Abayomi
The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice-President Atiku Abubakar to provide details of the legal, fiscal and operational framework behind his proposed production subsidy for locally refined petrol.
The demand followed Atiku’s renewed call for measures to reduce the cost of petrol and diesel, including his proposal for government support for locally refined petroleum products.
In a statement issued on Sunday by its spokesman, Dele Alake, the APC-PCC said the proposal raised questions about how it would operate under the Petroleum Industry Act (PIA) 2021 and how the government would finance the intervention.
The council cited Section 205(1) of the PIA, which provides for wholesale and retail petroleum prices to be determined under unrestricted free-market conditions. It also referred to a recent statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it does not ordinarily fix petrol pump prices except where conditions provided for by law are met.
The APC-PCC therefore asked Atiku to clarify whether refineries benefiting from his proposed subsidy would be required to sell petrol at a government-prescribed price.
According to the council, if such a price condition would apply, Atiku should explain the legal basis for imposing it and how it would be reconciled with the PIA. It also asked how government support to refiners would guarantee lower pump prices if refiners were not required to pass the benefit on to consumers.
The council further requested details of the proposed subsidy rate, annual spending limit, volume of crude or petrol to be covered, source of funding and safeguards against diversion, smuggling and fraudulent claims.
The APC-PCC estimated that the proposed intervention could cost between ₦17 trillion and ₦21 trillion annually, depending on the level of crude discount, the volume covered and the structure of the programme. The estimate is the campaign council’s projection, rather than an independently established cost.
The council also questioned Atiku’s current position in relation to his previous stance on petroleum subsidy and downstream deregulation. It recalled that Atiku spoke in favour of completing the removal of petrol subsidy in 2022, while he stated in August 2026 that he would restore subsidy if elected president.
Atiku has defended his position on subsidy as a measure intended to reduce the burden of high energy costs on Nigerians. His proposal has therefore become part of the broader policy debate ahead of the 2027 presidential election.
The APC-PCC said any intervention in the downstream petroleum sector should have a clear legal foundation, transparent funding structure and mechanisms capable of demonstrating how consumers would benefit.
Category: Politics
