Presidency has tackled former Vice President Atiku Abubakar over his proposal to restore fuel subsidy, describing it as fiscally reckless, retrogressive and incompatible with current petroleum sector laws.
Atiku had, in a recent interview, said he would consider restoring the subsidy removed by President Bola Tinubu if elected President in 2027.
Reacting in a statement on Thursday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, said Atiku had made a volte-face by now supporting the subsidy regime he previously campaigned to scrap ahead of the 2023 elections.
Onanuga said the promise, made five months to the next election, was driven by desperation for power and ignored Nigeria’s current economic and petroleum realities.
“The petrol subsidy regime that Nigerians knew before May 2023 was dismantled as part of the country’s petroleum-sector reforms. The Petroleum Industry Act removed the subsidy, ending a system that placed a substantial and often unpredictable burden on public finances,” the statement said.
The Presidency argued that there is no “N30 trillion subsidy windfall or savings” as claimed by Atiku, noting that what existed under the old regime was under-recovery and huge debts owed by the Nigerian National Petroleum Company Limited.
It added that Nigeria’s petroleum landscape has changed significantly since May 2023, with the emergence of domestic refining capacity led by the Dangote Refinery. According to the statement, restoring subsidy would reverse local production, bankrupt smaller refineries, cause job losses and lead to loss of foreign exchange.
“Because the sector is now market-driven, Nigeria now exports refined products to Europe, Asia, and the United States. This is a sharp contrast to when Obasanjo and Atiku were in power when Nigeria’s largest import, costing about $10 billion, was refined products,” Onanuga said.
The Presidency said funds previously spent on subsidy have gone into the coffers of the three tiers of government, making states more fiscally stable. It cited the N3 trillion shared in July from the federation account as evidence.
Onanuga said the government acknowledges the pressure of high petrol prices on households but is pursuing sustainable relief through Compressed Natural Gas, which is 70 per cent cheaper than petrol, rather than returning to an “opaque and fiscally burdensome subsidy regime.”
He challenged Atiku to provide details on how the subsidy would be funded, its annual cost, the source of revenue, and whether the National Assembly would be asked to amend the PIA.
“We urge all political actors, including Alhaji Atiku Abubakar, to present Nigerians with the full fiscal and legal implications of any proposal to restore fuel subsidy,” the statement added.
