morGANABLE politics/Governance
Under his newly unveiled Atiku Economic Recovery Plan 2027, the former Vice President proposed a shift from the previous subsidy model, which largely supported fuel importation, to one that incentivises local refining.
KaNo —
The Presidency and the Organised Private Sector (OPS) on Thursday launched strong criticisms against the presidential candidate of the African Democratic Congress (ADC) for the 2027 election, Atiku Abubakar, over his proposal to reintroduce petrol subsidy if elected.
Atiku’s latest economic proposal, which outlines a modified subsidy regime focused on domestic refining, has reignited the national debate over fuel subsidy removal, a policy scrapped by President Bola Tinubu in May 2023.
While the Federal Government and business stakeholders faulted the plan as economically unsound and politically motivated, the Nigeria Labour Congress (NLC) appeared divided, reflecting broader uncertainty among Nigerians over the future of fuel pricing and energy reforms.
Under his newly unveiled Atiku Economic Recovery Plan 2027, the former Vice President proposed a shift from the previous subsidy model, which largely supported fuel importation, to one that incentivises local refining.
“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. The principle is simple: the subsidy will follow the barrel,” Atiku said in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu.
The former Vice President explained that both public and private refineries that meet specific performance and regulatory benchmarks would qualify for the preferential crude allocation.
Framework Emphasize Local Production
Under the proposed framework, beneficiary refineries would be required to refine crude domestically and supply agreed volumes of petroleum products to the local market at transparent and regulated prices.
Atiku also outlined accountability mechanisms, stating that crude allocation, refinery intake, production output, and domestic distribution would be tracked and reconciled to prevent abuse.
“No phantom cargoes. No fictitious imports. No unverifiable under-recoveries. No retrospective claims,” the statement read.
He further proposed penalties for defaulters, including repayment of subsidy benefits and legal sanctions for operators who divert subsidised crude or falsify production records.
A key component of the proposal is the introduction of a fixed annual spending cap, to be included in the national budget, ensuring transparency and limiting fiscal exposure.
“No refinery gets unlimited support. No marketer brings government a surprise bill. No agency manufactures an under-recovery after the transaction,” Atiku added.
Atiku Calls For Transparency In Public Finance
The ADC candidate also called for greater transparency in the management of public finances, particularly in relation to petroleum sector expenditures.
He questioned the Nigerian National Petroleum Company Limited’s reported energy security expenses of about N4.84 trillion in 2023 and N7.13 trillion in 2024, amounting to nearly N12 trillion.
“At a time Nigerians were told subsidy had been removed, these figures raise legitimate questions. Nigerians deserve a clear explanation of the economic substance of these expenses,” he said.
“Nigerians cannot pay for subsidy removal twice,through high pump prices and through unexplained subsidy-like costs,” he stated.
However, the Presidency swiftly dismissed the proposal, describing it as a reversal of Atiku’s earlier position and a reflection of poor understanding of economic realities.
Tinubu Faults Atiku’s Proposal
President Tinubu, while receiving Governor Ademola Adeleke of Osun State at the Presidential Villa, Abuja, described the proposal as misguided.
“I saw one of my opponents say he will go back to subsidy. That is a demonstration of serious ignorance of governance and the economy,” Tinubu said.
“Before I came, many states could not pay salaries or pensions. Today, we have improved revenue flow and stability,” the President added.
Similarly, the Presidency, in a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, criticised Atiku’s proposal as fiscally reckless and politically expedient.
Titled “Restoring Petrol Subsidies: Atiku’s Volte-Face and Desperation for Power,” the statement accused the former Vice President of contradicting his own earlier campaign promise to remove subsidy within 100 days if elected in 2023.
“It is ironic that the same individual who once advocated subsidy removal now seeks to reintroduce it for political gain,” the statement read.
The Presidency also challenged Atiku to provide a clear fiscal framework to support his proposal, warning that subsidy regimes have historically placed unsustainable pressure on government finances.
Stakeholders in the Organised Private Sector also expressed concern over the potential economic implications of reintroducing subsidy in any form.
Business leaders argued that subsidy distortions could discourage investment in the downstream petroleum sector and undermine efforts to achieve market-driven pricing and efficiency.
They emphasised that the removal of subsidy, though painful, was necessary to attract private investment, including in refining capacity, logistics, and distribution infrastructure.
Meanwhile, reactions within the labour movement were mixed, with some leaders of the Nigeria Labour Congress expressing cautious support for policies that could ease the burden of high fuel costs on workers, while others warned against returning to a system prone to corruption and inefficiency.
The debate over subsidy has remained a contentious issue since its removal in 2023, which triggered sharp increases in petrol prices and transportation costs, worsening the cost-of-living crisis for millions of Nigerians.
Despite these challenges, the Federal Government has maintained that the policy was essential to prevent fiscal collapse and redirect resources to critical sectors such as infrastructure, education, healthcare, and job creation.
The Minister of Finance and Coordinating Minister of the Economy recently disclosed that subsidy removal, alongside exchange rate reforms, had generated savings of about N15.8 trillion between June 2023 and December 2025.
As political activities ahead of the 2027 general election begin to gather momentum, Atiku’s proposal has once again brought the issue of fuel subsidy to the forefront of national discourse.
While proponents argue for targeted support to cushion the impact of high fuel prices, critics warn that any return to subsidy could reverse recent economic gains.