APC-PCC Challenges Atiku Over Petrol Subsidy

…. Demands N21trn Cost Breakdown

By David Usman Abuja 

The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice-President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to explain the legal, fiscal and operational basis of his proposed production subsidy for locally refined petrol.

The council, in a statement issued on Sunday by its spokesman, Dele Alake, said Atiku’s proposal raised fundamental questions about its compatibility with the Petroleum Industry Act (PIA) 2021, its cost to government and the mechanism through which it would translate into lower pump prices for consumers.

Atiku had, at a press conference in Abuja on Friday, reiterated his proposal for a “production subsidy” for locally refined petrol, saying the intervention would help reduce pump prices. 

He also called on President Bola Tinubu to reduce the prices of petrol and diesel.

But the APC-PCC cited Section 205(1) of the PIA, which provides for wholesale and retail prices of petroleum products to be determined under unrestricted free-market conditions.

The council also referred to a recent statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it does not fix pump prices or issue administrative pricing templates except where statutory conditions for intervention are met. 

The regulator reportedly said no such market failure had been declared.

Alake therefore asked Atiku to clarify whether refineries that would benefit from the proposed subsidy would be required to sell petrol at a government-prescribed price.

According to him, if such a price condition would apply, Atiku should identify the legal framework that would empower government to impose it and explain how it would operate within the provisions of the PIA.

He also asked how the proposed subsidy would guarantee cheaper petrol if refiners were not compelled to reduce their pump prices, arguing that government support to producers could otherwise fail to translate into savings for consumers.

The APC-PCC further demanded details of the financial implications of the proposal, particularly if it involved supplying crude oil to domestic refineries at preferential prices. 

Alake said such an arrangement could reduce the value accruing to the Federation and consequently affect revenues available to the federal, state and local governments.

The council estimated that the proposed intervention could potentially cost between N17 trillion and N21 trillion annually, depending on the size of the crude discount,

The volume covered and whether the subsidy applied to the entire crude barrel or only petrol produced for domestic consumption. 

The APC-PCC said these assumptions should be clearly defined.

It demanded that Atiku disclose the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, source of funding, 

mechanism for guaranteeing lower pump prices, safeguards against diversion and smuggling, and whether amendments to the PIA would be required.

Alake also questioned Atiku’s current position in relation to his previous advocacy for downstream deregulation. He recalled that Atiku, while speaking at Lagos Business School in November 2022, had described the petrol subsidy regime as fraudulent and pledged to complete its removal.

The APC-PCC spokesman further cited an August 25, 2026 statement attributed to Atiku in which the former vice-president said, 

“I will restore it!” He challenged the ADC candidate to explain how his proposed production subsidy would differ from the previous arrangement and how it would prevent the abuses and fiscal losses associated with the former subsidy regime.

The council also contrasted Atiku’s proposal with the Tinubu administration’s emphasis on compressed natural gas (CNG) and electric mass transit as alternatives aimed at reducing transportation costs.

According to Alake, more than 120,000 vehicles had been converted to CNG, while CNG and electric bus programmes were already reducing fares on some routes. 

President Tinubu had also said following an August 27 meeting with the 36 state governors that more Nigerians should begin to see measurable reductions in transportation costs from October 1.

The APC-PCC said the administration would continue to support domestic refining and alternative-energy transport while regulatory agencies address alleged price-gouging and diversion of petroleum products across Nigeria’s borders.

It also pointed to increased domestic refining capacity, including the Dangote Petroleum Refinery, which it said had reached its nameplate capacity of 650,000 barrels per day and reportedly achieved 700,000 barrels per day during performance tests.

The council acknowledged the pressure of rising petrol prices on Nigerian households and businesses, but maintained that any intervention in the downstream petroleum sector must be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.

It consequently called on Atiku to publish a detailed policy document and obtain an independent legal and fiscal analysis of the proposal.

“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” Alake said.