Atiku: Dangote Warning Vindicates Our Domestic Fuel Subsidy Proposal

Former Vice-President Atiku Abubakar has said the warning by Dangote Refinery against government-imposed petrol prices that could force refiners to operate at a loss has validated his proposed domestic fuel production subsidy model.

Atiku, the presidential candidate of the African Democratic Congress (ADC), made the position known in a statement issued on Friday by his Senior Special Assistant on Public Communication, Phrank Shaibu.

He accused the Federal Government of deliberately misrepresenting his proposal in an attempt to discredit the policy, arguing that his plan was designed to protect both domestic refiners and consumers.

According to Atiku, Dangote Refinery was justified in opposing any policy that would compel a private refinery to sell petrol below its production cost.

“Dangote raised a legitimate business concern. The presidency turned it into a campaign of fear. A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses,” he said.

“But that is precisely why our proposal is different. We are restoring subsidy through a production subsidy model, not an import subsidy model.”

Atiku explained that, unlike the previous petrol subsidy regime, which he described as an import-focused arrangement, his proposal would channel government support towards domestic refining.

He said the government could reduce the cost of crude supplied to eligible Nigerian refineries through a transparent and independently verified mechanism, thereby lowering the cost of producing petrol.

“If the crude entering a refinery becomes cheaper, the cost of producing petrol should also come down. That reduction should then reach the average Nigerian while preserving legitimate refining costs and a reasonable commercial margin,” he said.

The former vice-president stressed that the proposed model would not require Dangote Refinery or other domestic refiners to sell their products below cost.

“There is a clear difference between helping a producer reduce costs and forcing that producer to sell at a loss,” Atiku said.

He added that any additional consumer relief provided by government should be openly funded through the national budget rather than forcing private refiners to bear the cost.

“It must be budgeted. It must be capped. It must be audited. Nigerians must know exactly what is being spent and what they are receiving in return,” he said.

Atiku said his proposed scheme would also include a strict fiscal ceiling, a maximum support level per barrel, independent verification of crude supplied to participating refineries, electronic tracking of crude intake and refined products, domestic supply obligations and independent audits.

“No mystery barrels. No endless claims. No blank cheques,” he said.

The ADC candidate maintained that the objective of the proposal was to make domestic refining commercially viable while ensuring that Nigerians benefit from the country’s crude oil resources through lower fuel prices.

“Dangote Refinery, modular refineries and other Nigerian investments must remain viable. We want more refineries, more investment, more competition and more refining capacity.

“But the Nigerian consumer must also benefit from the fact that this country produces crude oil.”

Atiku rejected what he described as a false choice between protecting refinery profitability and making petrol affordable for Nigerians.

“We reject the false choice between a profitable refinery and an affordable pump price. A competent government should be able to protect both the producer and the consumer,” he said.

His comments followed concerns over the implications of government intervention in petrol pricing, particularly the possibility that artificially controlled prices could compel private refiners to absorb losses.

Atiku argued that the concerns raised by Dangote Refinery reinforced, rather than invalidated, the need for a carefully designed production subsidy.

“Dangote is right that a refinery should not be forced to carry the burden of an artificially imposed price. We agree.

“Nigerians are also right that the present cost of fuel, transportation, food and doing business has become unbearable. Our production subsidy answers both concerns,” he said.

The former vice-president also criticised the Federal Government’s handling of petrol subsidy removal, arguing that it had contributed to increased transportation, food and business costs.

“For three years, Nigerians have been told to endure. Fuel rises, they say endure. Transport rises, endure. Food rises, endure. Businesses are crushed by energy costs, endure,” Atiku said.

He accused the government of presenting the hardship arising from its economic reforms as evidence of progress while resisting proposals aimed at reducing the underlying cost of domestically produced petrol.

Atiku further rejected the argument that every form of fuel subsidy would amount to dependence on imported petroleum products.

“If you do not refine in Nigeria, you do not qualify,” he said, stressing that his proposed intervention would not subsidise foreign refineries, importers or middlemen.