Why I will bring back the fuel subsidy if elected – Atiku

Former Vice President Atiku Abubakar explained that his plan to reinstate fuel subsidies aims to support local refining and reduce the cost of gasoline, rather than subsidize imported fuel.

Atiku clarified in a series of posts on his X platform on Saturday, saying his proposed policy would amount to a “production subsidy” rather than an import subsidy.

He said the policy was designed to support domestic refineries by reducing the cost of producing petrol from crude oil refined in Nigeria. According to him, the approach would allow local refineries to produce fuel at lower costs, with the benefits passed on to consumers.

Atiku explains the production subsidy proposal

Atiku said his proposal should not be confused with the subsidy deal to support imported petrol, stressing that its aim will be to boost domestic production.

He explained that the government will support crude oil refined in Nigeria so that domestic refineries can operate at lower production costs and make petrol available to Nigerians at cheaper prices.

Using the footwear sector as an analogy, Atiku said the government could spend public funds to make imported shoes cheaper or support local shoemakers in Aba to reduce production costs, create jobs and sell their products at cheaper prices.

“I choose Aba shoemaker,” he said.

According to him, the same principle would be applied to the oil sector, with the government supporting local refining instead of spending public resources to subsidize imported fuel.

Atiku said the policy would also encourage investment in domestic refining and strengthen the capacity of Nigerian refineries to meet the country’s fuel needs.

“I want bus fares and the cost of food to go down”

The former vice president said the goal of the proposed subsidy goes beyond reducing the price displayed at gas stations, arguing that reducing fuel costs would have broader effects on the economy.

He said cheaper gasoline could reduce transportation costs and the amount companies spend moving goods and services around the country.

“I want the bus fare you pay every morning to go down. I want the cost of getting food from farm to market to go down. I want the shopkeeper to spend less. I want the barber, the tailor, the welder and the small business owner to spend less on energy,” he said.

Atiku said reducing the cost of fuel and transportation would help ease pressure on families already struggling with the rising cost of living.

He added that lower logistics and energy expenses could also help companies operate more efficiently, potentially reducing the cost of goods and services to consumers.

Atiku takes aim at the cost of living crisis

Atiku said his ultimate goal is to put more money in the pockets of Nigerians by reducing household and business spending on fuel and transportation.

According to him, when transport and energy costs fall, the impact would extend to food distribution and other essential sectors of daily life.

The former vice president said the proposed production subsidy is therefore intended as part of a broader strategy to address the cost of living crisis and make basic necessities more accessible.

“I will make life accessible again. I will make Nigeria accessible again. That’s a promise,” Atiku said.

In another post responding to a follower’s prayer, Atiku urged Nigerians to help him explain the proposed production subsidy, especially its potential impact on women and families.

He said reducing fuel costs would reduce transportation expenses and make it easier for women who depend on small businesses and daily commercial activities to function.

He said cheaper transport and energy could also help lower food prices and reduce household spending on other basic necessities.

“This is the purpose of my production subsidy: to support what we perfect here, create jobs here, reduce the cost of fuel here and make daily life more affordable for Nigerian families,” he said.

Atiku’s explanation comes amid an ongoing debate over fuel prices and the broader economic impact of removing petrol subsidies. His proposal places emphasis on domestic refining, reducing production costs and using government support to make locally refined petrol more accessible to Nigerians.