Atiku Explains Fuel Subsidy Plan, Says Dangote’s Concern Is Legitimate

By Sabiu Abdullahi

Former Vice-President Atiku Abubakar has said his proposed fuel subsidy policy will focus on supporting crude supplied to Nigerian refineries rather than subsidising imported petrol if he wins the 2027 presidential election.

Atiku, the African Democratic Congress (ADC) presidential candidate, said the policy is designed to lower the cost of petrol through cheaper crude feedstock for domestic refineries.

He made the clarification in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, on Friday.

The statement followed criticism of Atiku’s proposal to restore fuel subsidy, particularly concerns over whether such a policy could compel private refineries to sell petrol below their production costs.

Atiku said recent comments from Dangote Refinery about government-imposed petrol prices had been misrepresented by the administration of President Bola Tinubu.

“Dangote raised a legitimate business concern. The presidency turned it into a campaign of fear,” the statement reads.

“A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses.

“That would be reckless, economically destructive and unfair to any private investor. But that is precisely why our proposal is different.”

‘We’ll Subsidise Production, Not Imports’

According to Atiku, his proposed model would redirect fuel subsidy towards crude supplied to local refineries instead of imported petrol.

“We are restoring subsidy through a production subsidy model, not an import subsidy model,” he said.

“The difference is simple enough for every Nigerian to understand. Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria.

“Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less.”

The former vice-president compared the proposed approach to government support for farmers, where assistance is provided to reduce the cost of producing food rather than subsidising imported food.

“That is exactly what we are proposing for fuel. We are restoring subsidy but moving it from importation to production. The subsidy follows the barrel refined in Nigeria,” he said.

He said qualifying domestic refineries would receive support through a transparent and capped system subject to independent verification. The arrangement, he added, would reduce the cost of crude used by the refineries.

“If the crude entering a refinery becomes cheaper, the cost of producing petrol should also come down,” he said.

“That reduction should then reach the average Nigerian while preserving legitimate refining costs and a reasonable commercial margin.”

Atiku also rejected the suggestion that his proposal would require private refineries to sell their products at a loss.

“The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians,” Atiku.

‘No Subsidy For Foreign Refineries’

Atiku said his proposed intervention would be restricted to crude refined within Nigeria, with local refineries, workers, businesses and consumers expected to benefit from the policy.

“Under our plan, support will be tied strictly to crude refined in Nigeria. Nigerian refineries will benefit. Nigerian workers will benefit. Nigerian businesses will benefit. Nigerian consumers will benefit,” he said.

“If you do not refine in Nigeria, you do not qualify. This is not a subsidy for foreign refineries. It is not a subsidy for importers. It is not a subsidy for middlemen. It is a subsidy for Nigerian production.”

The ADC candidate further said his administration would not dictate an arbitrary petrol pump price to domestic refineries.

“If government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then government must pay for that relief openly,” he said.

“It must be budgeted. It must be capped. It must be audited. Nigerians must know exactly what is being spent and what they are receiving in return.”

Atiku said the government should not set a politically attractive petrol price while leaving private refiners to absorb the resulting losses.

“You cannot announce a politically convenient petrol price and quietly dump the cost on the refinery,” he said.

“That is not policy. That is confiscation by another name.”