Presidency slams Atiku, says he is “confused”

The Presidency slammed former Vice President Atiku Abubakar for what it described as conflicting positions on petrol subsidies, saying the different explanations coming from him and his aides in the space of one week showed a lack of clarity in his policy proposals.

This was stated by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, in a statement released on Wednesday entitled, ‘Atiku is confused about fuel subsidies; The third change of direction in one week shows that he is just playing politics.’

Onanuga said Atiku’s stance had changed or been explained differently three times in a week, starting with a statement by his spokesman, Paul Ibe, that the former Vice President would restore fuel subsidies if elected and then phase them out.

He said another aide, Phrank Shaibu, later described Ibe’s position as an “illegitimate and misleading characterization” of Atiku’s stance, arguing that subsidies would remain in place until domestic refining increased, supplies stabilized and market competition deepened.

According to Onanuga, Atiku then stepped in and reiterated that his position had not changed, saying he would restore what he described as targeted subsidies.

He quoted Atiku as saying, “I will restore targeted subsidies and put purchasing power back in the hands of Nigerians.”

The Presidency questioned the differing explanations, and asked why one aide described the subsidy as temporary and could be phased out while another did not acknowledge that opinion before Atiku himself reiterated the initial suggestion.

Onanuga said, “This is not just a matter of semantics. This is a serious policy contradiction.”

He also challenged Atiku to explain how his proposed subsidy would work, including its costs, beneficiaries, funding mechanism and conditions for eliminating the subsidy.

“Therefore, we urge Atiku to stop switching positions and explain exactly what he means by ‘targeted subsidies’: how much will they cost, who will benefit, how will the beneficiaries be identified, how will they be funded, and what objective economic conditions will determine the termination of such subsidies?” he asked.

The presidential aide also rejected what he described as an oversimplification between petrol prices and the cost of living, arguing that several other factors, including insecurity, exchange rates, logistics, storage, flooding and agricultural input costs influence food inflation.

He further questioned the ADC candidate’s proposal to link subsidies to crude oil prices, stating that crude oil refining produces several petroleum products besides gasoline. Onanuga said diesel, aviation fuel and kerosene were among the products derived from crude oil, and asked whether Atiku’s proposed subsidies would also be applied to these products.

“Jet fuel and kerosene accounted for about nine percent of oil barrels. Kerosene and jet fuel were deregulated in 2009, and subsidies were eliminated in 2016,” Onanuga said.

Regarding other petroleum byproducts, he added, “About 10 to 15 percent of those barrels are the base material for synthetic rubber, nylon, polyester and plastics used in everyday items such as toothbrushes, cups and packaging.

“Asphalt accounts for about two to four percent of the barrel. Hydrocarbon Gas Liquids, such as propane and butane, account for about four percent.

“Lubricants and waxes account for about one to two percent. Petroleum coke and sulfur make up the solid residue left over from refining.”

He specifically recalled that diesel was deregulated in 2004 under Atiku’s administration as Vice President, while kerosene and aviation fuel were deregulated at different times.

The statement also accused Atiku of focusing too much on petrol and ignoring other products made from crude oil. The presidency stated that comprehensive economic policy must address the broader factors driving inflation and the cost of living rather than just focusing on petrol prices.

Onanuga concluded that the economy was too important to be subjected to what he described as “reverse policies, incoherence, destructive populism, and electoral gerrymandering.”

He questioned the consistency of providing subsidies only on petrol and ignoring other by-products used by Nigerians who are equally vulnerable.

“Will Atiku subsidize all the by-products from these barrels too, since kerosene is used by underprivileged communities for cooking, and many homes and factories use diesel to power generators and delivery trucks?

“And will he let the refineries supply crude oil at a discount to make a profit on 55 percent of the byproduct, while focusing subsidies only on gasoline, which is his obsession?”

The Presidency further argued that the former Vice President “must suffer from a lack of basic understanding of his new policy prescriptions.”