Tinubu Govt Tackles Atiku Over Plan to Restore Petrol Subsidy
By Nafiu Muhammad Lema
The Presidency has criticised former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, over his proposal to restore petrol subsidy if elected president in 2027.
In a statement issued on Thursday by the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, the Presidency described Atiku’s position as a “volte-face” and an attempt to gain political advantage ahead of the 2027 election.
Onanuga said Atiku’s proposal represented a return to what he described as an “archaic” and fiscally unsustainable fuel subsidy regime, noting that the Petroleum Industry Act (PIA) had provided for the removal of petrol subsidy by the end of June 2023.
According to him, Atiku had previously supported the removal of subsidy but had now reversed his position ahead of the election.
The Presidency argued that restoring the subsidy would require a clear legal, fiscal and administrative framework, including identifying the source of funding and determining how the policy would operate under Nigeria’s current petroleum-market structure.
It also rejected Atiku’s claim that the Federal Government had accumulated about N30 trillion in subsidy savings, describing the claim as inaccurate.
The statement noted that Nigeria’s petroleum industry had changed significantly since 2023, particularly with the emergence of domestic refining capacity.
It cited the Dangote Refinery as a major development that has increased local petrol production and reduced reliance on imported refined petroleum products.
Onanuga warned that returning to the former subsidy regime could undermine investments in local refining and once again expose government finances to huge liabilities.
He said the funds previously used to finance petrol price discounts were now available to the three tiers of government for salaries, infrastructure and other public services.
The Presidency also linked the removal of subsidy and foreign exchange reforms to increased federal allocations, noting that the three tiers of government shared about N3 trillion from the Federation Account in July.
It further argued that Nigeria was gradually moving towards a petroleum system in which crude oil is processed domestically, reducing dependence on imported refined products and conserving foreign exchange.
Onanuga acknowledged the hardship caused by higher petrol prices, particularly the impact on households and businesses, but said the government was pursuing alternative measures to reduce energy costs.
He cited the administration’s promotion of Compressed Natural Gas (CNG), which he said was about 70 per cent cheaper than petrol for transportation and logistics.
The Presidency challenged Atiku to provide details of how his proposed subsidy would be financed if elected.
It asked the ADC candidate to explain the annual cost of the programme, its funding source, whether the government would borrow to finance it, and whether amendments to existing petroleum-sector laws would be required.
It also questioned what exactly would be subsidised under the proposed arrangement, given Nigeria’s increased domestic petrol production.
“Political promises must be backed by fiscal arithmetic,” Onanuga said, urging political actors to explain the full financial and legal implications of their policy proposals to Nigerians.
The Presidency maintained that Nigeria should focus on achieving sustainable reductions in energy costs through domestic refining, competition and improved regulation rather than returning to what it described as an opaque and financially burdensome subsidy regime.
Onanuga said the country could not afford to return to policies whose costs would eventually emerge through increased debt, reduced public spending and pressure on the naira.
The statement urged Atiku and other political actors to base the debate over the cost of living and economic policy on Nigeria’s present realities rather than the petroleum system of the past.
