APC Demands Details on Atiku’s Petrol Subsidy Plan

The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational basis of his proposal to subsidise petrol produced by local refineries.

The council's challenge followed Atiku's renewed call for lower petrol and diesel prices and his proposal for government intervention to reduce the cost of locally refined petrol.

In a statement signed by its spokesman, Dele Alake, the APC-PCC questioned how the proposed subsidy would work within the pricing regime established by the Petroleum Industry Act (PIA) 2021.

Alake cited Section 205(1) of the PIA, which provides that wholesale and retail prices of petroleum products should be determined under unrestricted free-market conditions.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also said that it does not ordinarily fix petrol pump prices or issue administrative pricing templates, except where statutory conditions for intervention are met. The regulator recently said no such market failure had been declared.

The APC-PCC consequently asked whether refineries benefiting from Atiku's proposed subsidy would be required to sell petrol at a government-prescribed price.

“If the answer is yes,” Alake said, Atiku should identify the legal framework under which such a price condition would be imposed and explain how it would comply with the PIA.

“If the answer is no,” he added, the former vice president should explain how government support to refiners would guarantee lower prices at filling stations.

The council also demanded details of the financial implications of the proposal, particularly reports that Atiku may favour supplying crude oil to domestic refineries at preferential prices.

According to the APC-PCC, such an arrangement could have fiscal implications for government because a discount on crude could reduce the value accruing to the Federation.

The council put the possible annual cost of the intervention at between ₦17 trillion and ₦21 trillion, depending on the size of the proposed discount, the volume of crude covered and whether the subsidy would apply to entire crude barrels or only to petrol sold domestically.

However, the figures remain estimates contained in the APC-PCC's argument; the actual cost cannot be established without details of Atiku's proposed subsidy formula, eligible volumes and funding arrangements.

The council asked Atiku to publish seven key elements of the proposal: the subsidy rate, annual spending ceiling, volume of crude or petrol covered, funding source, mechanism for ensuring lower pump prices, safeguards against diversion and fraudulent claims, and whether amendments to the PIA would be necessary.

The controversy has also revived questions about Atiku's changing position on petrol subsidy.

In November 2022, while campaigning for the presidency, Atiku said he would complete the removal of petrol subsidy, describing the existing system as fraudulent and recalling his role in the earlier phases of deregulation.

In August 2026, however, he announced that he would restore subsidy if elected president, describing his proposed intervention as targeted support for domestic production.

The APC-PCC wants Atiku to explain how the proposed arrangement would differ from the former subsidy regime, which critics had associated with fiscal costs, smuggling and other abuses.

The council's intervention comes amid the Federal Government's efforts to reduce transportation costs through alternative fuels and mass-transit programmes, particularly compressed natural gas (CNG) and electric buses.

The administration says more than 120,000 vehicles have been converted to CNG, while CNG and electric buses have been deployed on routes in several states with reported reductions in fares.

The government has also pointed to rising domestic refining capacity, including the Dangote Petroleum Refinery, as part of its argument for maintaining a deregulated downstream petroleum market.

For motorists and businesses facing higher energy costs, however, the central question remains whether Atiku's proposed production subsidy would translate into lower pump prices and, if so, how much it would cost the public purse.

Until the details of the proposal are made public, questions remain over its precise legal basis, funding mechanism, fiscal exposure and the safeguards that would be required to ensure that any government support to refiners ultimately benefits consumers.