By Kazeem Ugbodaga
The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and practical framework for his proposed subsidy on locally refined petrol.
In a statement on Sunday, APC-PCC spokesman Dele Alake said Atiku’s proposal to introduce a “production subsidy” for locally refined petrol raised fundamental questions about how the policy would operate under Nigeria’s existing petroleum laws.
Alake said Atiku, who recently called for lower petrol and diesel prices, should explain whether refiners receiving the proposed subsidy would be required to sell their products at government-prescribed prices.
He stated that Section 205(1) of the Petroleum Industry Act (PIA) 2021 provides for market conditions to determine wholesale and retail prices of petroleum products.
Alake also referred to a statement attributed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it does not ordinarily fix pump prices or issue administrative price templates except where statutory conditions for intervention are met.
He asked Atiku to explain the legal mechanism through which his proposed subsidy would guarantee lower prices for consumers.
“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act,” Alake said.
He added that if refiners would not be compelled to reduce pump prices, Atiku should explain how government support to producers would necessarily translate into cheaper petrol for consumers.
Alake also questioned how the proposed intervention would be funded, particularly if it involved supplying crude oil to domestic refineries at preferential prices.
He said such an arrangement could reduce the value of crude accruing to the Federation and affect revenues available to the federal, state and local governments.
According to Alake, the APC-PCC estimated that the cost of the proposed subsidy could potentially reach between N17 trillion and N21 trillion annually, depending on the size of the crude discount, the volume covered and whether the intervention applied to all crude or only petrol produced for domestic consumption.
He said Atiku should therefore disclose the proposed subsidy rate, annual spending limit, volume of crude or petrol to be covered, funding source and the mechanism that would ensure consumers actually benefit through lower pump prices.
Alake also demanded details of safeguards against diversion, smuggling and fraudulent claims, as well as clarification on whether the implementation of the proposal would require amendments to the PIA.
“An appropriation by the National Assembly may authorise expenditure, but it would not by itself resolve every regulatory question arising under the Petroleum Industry Act,” he said.
The APC-PCC spokesman also challenged Atiku to reconcile his current position with his previous advocacy for downstream petroleum deregulation.
Alake recalled that Atiku, while speaking at Lagos Business School in November 2022, described the petrol subsidy regime as fraudulent and pledged to complete its removal.
He also cited Atiku’s August 25, 2026 statement on X in which the former vice president said, “I will restore it!”
Alake said Atiku should explain how the proposed subsidy would differ from the previous system and how it would avoid problems associated with the former regime, including smuggling, scarcity and alleged abuse.
He further traced aspects of downstream deregulation to the administration of former President Olusegun Obasanjo, during which Atiku served as vice president.
According to Alake, diesel was deregulated in June 2003, while aviation fuel also moved to market pricing under that administration. He said the Buhari administration later deregulated kerosene in 2016, leaving petrol as the major product under the old subsidy arrangement.
Alake said the APC-PCC believed Atiku’s latest proposal should be assessed against the legal and regulatory framework established through the petroleum-sector reform process that culminated in the PIA.
He contrasted Atiku’s proposal with the Tinubu administration’s emphasis on alternative transport energy, particularly compressed natural gas (CNG) and electric mass transit.
Alake said the government had converted more than 120,000 vehicles to CNG and was working with state governments to expand lower-cost transport services.
He quoted President Bola Tinubu as saying that, following an August 27 meeting with the 36 state governors, “From October 1, more Nigerians should begin to see measurable reductions in transportation costs.”
Alake said CNG and electric transport initiatives were already reducing fares on some routes, citing examples from Borno, Niger, Kaduna, Adamawa and Abia states.
He said commuters on some routes served by alternative-energy buses were paying significantly less than fares charged by commercial operators.
The APC-PCC spokesman acknowledged the pressure high petrol prices place on households and businesses but argued that the administration was pursuing measures aimed at addressing transport costs without returning to the former subsidy regime.
He said the government would continue to support policies designed to expand domestic refining and alternative energy while regulatory agencies tackle issues including price-gouging and the diversion of petroleum products across Nigeria’s borders.
Alake said the APC-PCC expected any proposed intervention in the downstream petroleum sector to be lawful, transparent, properly costed and capable of producing measurable benefits for consumers.
“Atiku should provide Nigerians with a detailed policy document and an independent legal and fiscal analysis of his proposal,” he said.
“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework.”
