Atiku proposes targeted fuel subsidy for local refineries

Former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, has proposed a new petrol subsidy model that would support domestic refineries rather than fuel imports.

Atiku, in a statement by his Senior Special Assistant on Public Communication, Phrank Shaibu, said the proposal under his Atiku Economic Recovery Plan 2027 would provide qualifying refineries with Nigerian crude at preferential prices, subject to production and domestic supply requirements.

He said the policy would not revive the former subsidy regime but would shift government support from importers to local producers.

“My proposal is not to resurrect the old subsidy regime. We will move subsidy from importation to production, from middlemen to Nigerian refineries, and from unverifiable claims to verifiable barrels,” Atiku said.

Under the proposed scheme, subsidised crude would only be allocated to refineries that independently verify production and supply of petroleum products to the Nigerian market.

Atiku said the programme would have spending limits, independent audits and a sunset clause, with subsidies gradually reduced as domestic refining capacity and competition improve.

He also pledged to track subsidised crude from allocation to production and sanction operators found diverting crude, manipulating records or failing to meet domestic supply obligations.

The ADC candidate criticised President Bola Tinubu’s handling of the 2023 subsidy removal, arguing that Nigerians had borne the immediate impact of higher fuel prices without sufficient explanation of subsequent petroleum-related expenditures.

He cited NNPCL financial statements showing N4.84 trillion in Energy Security Expenses in 2023 and N7.13 trillion in 2024, demanding greater transparency over the figures.

Atiku also called for a month-by-month reconciliation of about N30 trillion in Federation revenues, deductions, savings and related transfers, stressing that he was not alleging the entire amount represented subsidy or had been stolen.

He promised to investigate previous subsidy transactions and prosecute anyone found to have diverted public funds.

“Our objective is not merely cheaper petrol. It is cheaper transportation, cheaper food, stronger businesses, more Nigerian jobs and greater purchasing power,” Atiku said.