Explain legal and fiscal basis for oil subsidy repayment proposal, APC-PCC challenges Atiku

The Presidential Campaign Council of the All Progressives Congress (APC – PCC) has challenged former Vice President Atiku Abubakar to explain the legal and fiscal basis of his proposed “production subsidy” for locally refined petrol.

Atiku, candidate of the African Democratic Congress (ADC), on Friday reiterated in a press conference in Abuja his plan to reduce the price of petrol and asked President Bola Tinubu to copy his idea and do the same.

In a statement issued on Sunday in Abuja by its spokesperson, Dr. Dele Alake, the APC Presidential Campaign Council said the proposal raises important legal, fiscal and practical questions that Atiku needs to answer.

The Council cited section 205(1) of the Petroleum Industry Act, PIA, 2021, which provides that unrestricted free market conditions will determine the wholesale and retail prices of petroleum products.

“Atiku should then explain whether a refinery receiving the proposed subsidy will be required to sell petrol at a prescribed price.

“If the answer is yes, it should identify the legal framework under which the Government would impose such a price condition and explain how it would work in accordance with the Petroleum Industry Act.

“If the answer is no, it should explain how public support for refineries would ensure lower prices at gas stations. Without an enforcement mechanism, refiners could receive the benefit while consumers continue to pay market prices.”

The statement also lists seven questions for Atiku to answer, including subsidy rate, annual expenditure ceiling, volume of crude oil or petrol covered, source of financing, mechanism to lower prices at the pump, safeguards against diversion and smuggling, and whether an amendment to the PIA would be necessary.

The APC Campaign Council said Atiku must reconcile his latest position with his previous support for deregulation, recalling that in November 2022 at the Lagos Business School, he described the petrol subsidy as fraudulent and pledged to complete its removal.

“An appropriation by the National Assembly may authorize expenditure, but it alone would not resolve all regulatory issues arising from the Petroleum Industry Act. If Atiku intends to change the law, he should say so clearly.

“His latest position must also be reconciled with his previous support for downstream deregulation. In November 2022, at the Lagos Business School, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal. He reminded his audience that he chaired the committee that removed the first and second phases, and promised to complete the process. On 25 August 2026, he announced on X: ‘I will bring it back!’

“He must explain why he now supports restoring the subsidies in another form and how his proposal would avoid the abuses, shortages, smuggling and tax losses associated with the old system.”

The Council said President Tinubu’s administration has instead focused on low-cost alternatives such as compressed natural gas, CNG and electric mass transit, noting over 120,000 vehicles converted to CNG and fare reductions of 31 to 83 percent on routes served in seven states and FCT.

Instead, he says Atiku is going back in time with another subsidy program, urging Nigerians to ignore politicians who want to return to the subsidy era of debt, queues and smuggling.

The Campaign Council concluded by stating that any downstream intervention must be lawful, transparent, properly evaluated and able to deliver measurable benefits, urging Atiku to provide a detailed policy document and independent legal and fiscal analysis.

“Nigeria will continue to move forward with a deregulated market that has supported increased investment in domestic refining. The Dangote oil refinery has reached its nameplate capacity of 650,000 barrels per day and reportedly reached 700,000 barrels per day during performance testing. The company has also launched an initial public offering targeted at ₦2.1 trillion for the expansion.”