Tanya Davidson
Abuja — Presidential candidate of the African Democratic Congress, ADC, Atiku Abubakar, has proposed a targeted production subsidy for petrol refined in Nigeria, saying government support should reduce the cost of domestic refining rather than subsidise imported fuel.
Atiku restated the proposal in a statement on his “People First” agenda, arguing that supporting locally refined petrol could help reduce pump prices and ease transportation and other costs facing households and businesses.
“That includes restoring fuel subsidy, not the old import-dependent system, but a targeted production subsidy that supports fuel refined here in Nigeria, strengthens domestic production and is designed to reduce the price Nigerians pay at the pump,” he said.
The proposal would represent a shift from Nigeria’s former import-oriented petrol subsidy arrangement to an intervention targeted at domestic production. Atiku has previously explained that his model would support crude supplied to Nigerian refineries to reduce their production costs.
He said lower fuel costs could have wider effects across the economy by easing transportation expenses and the cost of moving agricultural produce from farms to markets, while reducing pressure on small businesses.
“When fuel becomes more affordable, transportation costs can ease. The cost of moving food from farms to markets can come down. Small businesses can breathe again,” Atiku said.
The proposal comes amid renewed debate over petrol prices following the removal of the previous subsidy regime. The Presidency and the APC Presidential Campaign Council have questioned the legal, fiscal and operational basis of Atiku’s proposed intervention, including how it would operate within the Petroleum Industry Act, PIA, 2021.
The APC campaign council has also asked Atiku to disclose details including the proposed subsidy rate, spending limits, funding source and safeguards against diversion and fraudulent claims.
Atiku, however, maintains that his proposal is designed to support domestic refining, create Nigerian jobs and reduce the cost of petroleum products for consumers.
“Our message remains clear: produce here, refine here, create Nigerian jobs, lower the cost of fuel and make life affordable again,” he said.
