morganable politics/elections
Against this backdrop, the ruling party’s campaign council asked Atiku to clarify whether refineries benefiting from the proposed subsidy would be required to sell petrol at a regulated price.
KaNo—
The All Progressives Congress Presidential Campaign Council has challenged the presidential candidate of the African Democratic Congress, Atiku Abubakar, to provide detailed explanations on the legal and fiscal framework of his proposed production subsidy for locally refined petrol.
In a statement issued on Sunday, the spokesman of the APC-PCC, Dele Alake, said the proposal raised “important legal, fiscal and practical questions” that required clear answers, particularly in light of the provisions of the Petroleum Industry Act 2021.
The council’s reaction followed Atiku’s call on Friday urging President Bola Tinubu to reduce the prices of petrol and diesel.
As part of his recommendations, the former vice president proposed the introduction of a production subsidy for locally refined petroleum products to ease the burden of high fuel costs on Nigerians.
However, Alake argued that the proposal appeared to conflict with existing laws governing the downstream petroleum sector.
He cited Section 205(1) of the Petroleum Industry Act, which stipulates that wholesale and retail prices of petroleum products must be determined by unrestricted free-market conditions.
According to him, any attempt to introduce a subsidy mechanism would need to clearly define how it aligns with the deregulated pricing framework established by the law.
The APC-PCC also referenced a position earlier stated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which clarified that it does not fix petrol pump prices or provide administrative pricing templates except under specific statutory conditions.
The authority had noted that no market failure had been declared to justify regulatory intervention.
Against this backdrop, the ruling party’s campaign council asked Atiku to clarify whether refineries benefiting from the proposed subsidy would be required to sell petrol at a regulated price.
“If the answer is yes,” Alake said, “he should identify the legal framework under which such a price control would be imposed and demonstrate how it would operate in compliance with the Petroleum Industry Act.”
He added that if the answer was no, then the former vice president needed to explain how government support to refiners would translate into lower pump prices for consumers.
“Without an enforceable mechanism,” Alake stated, “refiners could receive public funds while Nigerians continue to pay market prices at filling stations.”
The APC-PCC further demanded details on the projected cost of the subsidy plan and its funding sources.
It noted that Atiku had previously suggested the possibility of offering crude oil to domestic refineries at preferential rates as part of the intervention.
According to the council, such an approach could significantly reduce revenue accruing to the Federation Account, thereby affecting allocations to federal, state and local governments.
Alake said estimates based on refinery throughput and domestic petrol supply suggested that the cost of the proposed subsidy could range between N17tn and N21tn annually, depending on variables such as the discount rate, volume of crude supplied, and whether the subsidy would apply to all refined products or only petrol consumed locally.
“These assumptions must be clearly defined,” he said.
“Nigerians deserve to know the proposed subsidy rate, annual spending ceiling, volume coverage, funding sources, and the safeguards against diversion, smuggling and fraud.”he added.
The APC-PCC also questioned what it described as inconsistencies in Atiku’s stance on fuel subsidy.
It recalled that the former vice president had, during a 2022 engagement at the Lagos Business School, described the subsidy regime as fraudulent and pledged to eliminate it entirely.
Alake also referenced an August 25, 2026 post by Atiku on X, in which he reportedly said, “I will restore it!”
“He must explain why he now advocates restoring subsidy in another form,” the APC-PCC spokesman said, adding that the candidate should also clarify how his proposal would avoid the corruption, scarcity, smuggling and fiscal strain that characterised previous subsidy regimes.
The council further pointed to Atiku’s role in earlier deregulation efforts, noting that diesel and aviation fuel were deregulated during the administration of former President Olusegun Obasanjo, when Atiku served as vice president.
It said petrol remained the last major product under subsidy until its removal in June 2023, in line with the provisions of the Petroleum Industry Act.
According to the APC-PCC, the reform process that led to the enactment of the PIA began in 2000 during Atiku’s first term as vice president, making it necessary for him to explain how his current proposal fits into the existing legal and regulatory framework.
In contrast, the council highlighted the Tinubu administration’s policies aimed at reducing transportation costs through alternative energy sources.
It cited ongoing investments in compressed natural gas and electric mass transit systems as more sustainable approaches.
Alake said over 120,000 vehicles had already been converted to CNG, while several states had introduced CNG-powered and electric buses, resulting in reduced transport fares on some routes.
Quoting President Tinubu, he said the government expected more Nigerians to begin experiencing measurable reductions in transportation costs from October 1.
The APC-PCC also referenced examples from Borno, Niger, Kaduna, Adamawa and Abia states to support its claim that alternative energy initiatives were already delivering results.
It criticised Atiku’s proposal as a return to a system that could encourage inefficiency and illicit activities, warning that subsidy regimes historically benefitted smugglers more than ordinary citizens.
The council reaffirmed the Federal Government’s commitment to maintaining a deregulated downstream petroleum market, arguing that it had encouraged increased investment in domestic refining capacity.
It cited the Dangote Petroleum Refinery as a key example, noting that the facility had reached its nameplate capacity of 650,000 barrels per day and reportedly achieved up to 700,000 barrels per day during performance tests.
According to the APC-PCC, such investments demonstrated growing confidence in Nigeria’s deregulated market environment.
The council acknowledged the economic pressure caused by high fuel prices but attributed recent increases partly to global factors, including rising crude oil prices triggered by geopolitical tensions.
It noted that petrol prices had been around ₦830 per litre before crude oil prices surged above $100 per barrel, adding that a de-escalation of global conflicts could help stabilise fuel prices.
Alake said the government was also working through relevant agencies, including the Federal Competition and Consumer Protection Commission and the Nigeria Customs Service, to address price gouging and prevent cross-border diversion of petroleum products.
The APC-PCC concluded by urging Atiku to publish a comprehensive policy document outlining the operational, legal and fiscal details of his proposed subsidy plan.
“Until he does so,” Alake said, “his production-subsidy plan remains an uncosted promise without a clearly defined legal or operational framework.”
