Former Vice-President Atiku Abubakar says his administration will introduce a production subsidy for crude supplied to Nigerian refineries to reduce petrol prices if he wins the 2027 presidential election.
Atiku, the African Democratic Congress (ADC) presidential candidate, said the policy would support domestic refining rather than subsidise imported petrol.
He made the remarks in a statement issued by Phrank Shaibu, his senior special assistant on public communication, on Friday, amid criticism of his proposal to restore fuel subsidy.
Atiku said concerns recently raised by Dangote Refinery over government-imposed petrol prices had been misrepresented by the Tinubu administration as evidence that his proposal would force private refineries to sell below cost.
“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: We’ll subsidise production, not imports
Atiku said his proposed intervention would shift fuel subsidy from imported petrol to crude supplied to local 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.”
He compared the proposal with government support for local farmers aimed at reducing food production costs instead of 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.
Atiku said the proposed subsidy would reduce the cost of crude feedstock supplied to qualifying domestic refineries through a transparent, capped and independently verified mechanism.
“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.”
He said helping producers reduce their costs was different from forcing them to sell below cost and operate at a loss.
“The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians,” Atiku said.
No subsidy for foreign refineries, Atiku says
The ADC presidential candidate said only crude refined in Nigeria would qualify for the proposed intervention.
“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 said his administration would not impose an arbitrary pump price on domestic refineries.
“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 said the government should not announce a politically convenient petrol price and transfer the resulting cost to private refineries.
“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.”
