2027 : Atiku unveils plan to lower petrol prices

Former Vice-President Atiku Abubakar has unveiled a proposal to subsidise crude oil supplied to Nigerian refineries as part of measures to reduce the cost of petrol if he wins the 2027 presidential election.

Atiku, the presidential candidate of the African Democratic Congress (ADC), said the proposal would focus on supporting domestic refining rather than subsidising imported petroleum products.

He explained that the policy became necessary amid recent concerns raised by the Dangote Refinery over government-imposed petrol pump prices.

The former vice-president, in a statement issued on Friday by his Senior Special Assistant on Public Communication, Phrank Shaibu, accused the Tinubu administration of deliberately presenting his proposal as an attempt to compel private refineries to sell petrol below their production costs.

“Dangote raised a legitimate business concern. The presidency turned it into a campaign of fear,” the statement reads.

“A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses.

“That would be reckless, economically destructive and unfair to any private investor. But that is precisely why our proposal is different.”

Atiku said his proposed model would redirect government support from imported petrol to crude oil supplied to qualifying domestic refineries.

“We are restoring subsidy through a production subsidy model, not an import subsidy model,” he said.

“The difference is simple enough for every Nigerian to understand. Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria.

“Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less.”

According to him, the approach would be similar to government interventions aimed at lowering the cost of food production by supporting local farmers rather than subsidising imported food.

“That is exactly what we are proposing for fuel. We are restoring subsidy but moving it from importation to production. The subsidy follows the barrel refined in Nigeria,” he said.

He said the arrangement would involve reducing the cost of crude supplied to eligible domestic refineries through a transparent and capped system subject to independent verification.

“If the crude entering a refinery becomes cheaper, the cost of producing petrol should also come down,” he said.

“That reduction should then reach the average Nigerian while preserving legitimate refining costs and a reasonable commercial margin.”

Atiku maintained that government assistance aimed at lowering production costs should not be confused with forcing refinery operators to sell their products at a loss.

“The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians,” Atiku.

The ADC candidate stressed that the proposed subsidy would be restricted to crude refined within Nigeria.

“Under our plan, support will be tied strictly to crude refined in Nigeria. Nigerian refineries will benefit. Nigerian workers will benefit. Nigerian businesses will benefit. Nigerian consumers will benefit,” he said.

“If you do not refine in Nigeria, you do not qualify. This is not a subsidy for foreign refineries. It is not a subsidy for importers. It is not a subsidy for middlemen. It is a subsidy for Nigerian production.”

Atiku also said his administration would not compel domestic refineries to sell petrol at an arbitrarily fixed pump price.

“If government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then government must pay for that relief openly,” he said.

“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 argued that government should bear any additional cost arising from a decision to provide consumers with petrol below the sustainable market price, rather than shifting the burden to refinery operators.

“You cannot announce a politically convenient petrol price and quietly dump the cost on the refinery,” he said.

“That is not policy. That is confiscation by another name.”