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By Victor Osula, Abuja
African Democratic Congress (ADC) presidential candidate Atiku Abubakar has proposed a targeted production subsidy for refined petroleum products in Nigeria, saying the measure would reduce pump prices while encouraging domestic refining, job creation and economic activity.
Atiku made the proposal on Friday in Abuja while speaking at a press conference on fuel prices, cost of living and economic hardships Nigerians face.
He said that under the proposal, government support would only apply to petroleum products refined locally and sold to Nigerians, with imported petroleum products expressly excluded from the scheme.
According to him, the intervention would also be subject to a fixed spending limit, approval by the National Assembly and independent checks to ensure transparency and prevent abuse.
“If elected, from May 29, 2027, I will introduce a transparent production subsidy for petroleum products refined in Nigeria and sold to Nigerians,” Atiku said.
He said the proposal is intended to reduce the cost of domestic production rather than returning Nigeria to the previous system of subsidizing imported petrol.
He likened the proposed deal to government support for a Nigerian rice producer, explaining that reducing the costs of local processing could make the finished product cheaper, stimulate demand and create opportunities for farmers, processors, transporters and other businesses.
“Government support must bring down prices. Only products refined in Nigeria will be allowed. Imported products will not,” he said.
Atiku said the ultimate goal is to ensure that government intervention directly translates into lower prices for consumers, increased domestic production and increased job opportunities.
He argued that such a policy would also strengthen the domestic oil value chain, giving local refineries an incentive to increase production, while ensuring that Nigerian consumers benefit from the resulting lower production costs.
The proposal comes in the context of the removal of petrol subsidies by the federal government soon after President Bola Tinubu took office in May 2023.
The policy ended the long-standing system under which the government absorbed some of the cost of gasoline, leading to sharp increases in prices at the pump and triggering higher transportation and logistics costs.
The Tinubu administration has consistently defended the reform, arguing that the removal of subsidies strengthened public finances, reduced pressure on foreign exchange and helped create conditions for investment in domestic refining.
In August, the federal government said removing the subsidy was necessary to create a viable market for private investment in refining, including the Dangote oil refinery.
The administration also highlighted the growth of domestic refining as one of the results of oil sector reforms. The Dangote refinery, which has a reported capacity of approximately 700,000 barrels per day, has significantly increased Nigeria’s domestic refining capacity and reduced dependence on imported refined products.
Atiku, however, argued that economic benefits are cited by the government had not sufficiently translated into improved purchasing power for ordinary Nigerians. He said the removal of gasoline grant it had driven up the costs of transportation, food, manufacturing and logistics, ultimately shifting the burden to families and businesses.
“When government makes energy expensive, it makes life expensive,” he said.
The ADC candidate argued that government intervention should address the underlying cost of energy instead of depending primarily on palliatives to cushion the impact of higher prices.
He said emergency assistance has its place, but argued that temporary aid cannot replace policies that can permanently reduce the cost of production and improve household incomes.
“Palliatives manage pain. Good policy addresses the source of pain,” Atiku said.
He, therefore, challenged Tinubu to reconsider his administration’s approach to fuel prices and take measures that will provide immediate relief to Nigerians.
Atiku said the President should be willing to implement a policy that would reduce petrol prices, regardless of who proposes it.
“If responsible intervention can lower prices, take action. If changing course can help Nigerian families, change course,” he said.
The former Vice President also offered to make his policy framework available to the Tinubu administration if it would help reduce economic pressure on Nigerians. He said the President could implement the proposal and even take credit for it, stressing that his immediate concern was the welfare of Nigerians rather than political ownership of the policy.
“Take credit,” Atiku said. “I only ask for one thing: let Nigerians breathe.”
Atiku’s proposal seeks to draw a distinction between the previous subsidy model and the intervention he proposed, insisting that government assistance should follow locally refined products rather than imported oil.
It said the system would be tied to verifiable domestic production, with limited spending and subject to legislative oversight and independent audits.
Apart from the price of petrol, Atiku also warned against imposing additional energy costs on Nigerians without adequate protection, particularly in relation to electricity. He said rising energy costs were hitting small businesses, manufacturers, farmers, transport operators and families, warning that further increases could exacerbate the pressure created by rising petrol prices.
The former Vice President urged Tinubu to use the remaining period of his administration to reduce the cost burden on Nigerians rather than wait for another government to address the problems.
He said the test of economic policy should ultimately be whether Nigerians can afford basic necessities and whether increased production translates into jobs and improved purchasing power.
“Economic growth must enter the home. It must enter the market basket. It must manifest itself in the purchasing power of the worker,” Atiku said, adding that government should not be more concerned with rising income and economic statistics than with the ability of Nigerian citizens to meet their daily needs.
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