By Chesa Chesa
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 introduce a production subsidy for locally refined petrol.
In a statement on Sunday by its spokesman, Dele Alake, the council said Atiku’s proposal to subsidise locally refined petrol and reduce pump prices raised questions about its compatibility with the Petroleum Industry Act (PIA) 2021.
The APC-PCC cited Section 205(1) of the PIA, which provides for unrestricted free-market conditions to determine the wholesale and retail prices of petroleum products.
It also referenced a recent statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it neither fixes pump prices nor issues administrative price templates except where statutory conditions for intervention are met.
“At the moment, ‘No such market failure has been declared,’ NMDPRA said,” the statement quoted the regulator as saying.
The council asked Atiku to clarify whether refineries receiving the proposed subsidy would be required to sell petrol at a prescribed price.
“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act,” it said.
It also asked him to explain how consumers would benefit if refiners received government support without an enforceable mechanism requiring lower pump prices.
The APC-PCC further demanded details of the cost and funding arrangements for the proposed intervention, saying Atiku’s earlier statements suggested that it could involve preferentially priced crude for domestic refineries.
According to the council, any discount on crude supplied to local refineries would reduce the value accruing to the Federation and potentially affect revenues available to the federal, state and local governments.
It estimated that the proposed subsidy could cost between N17 trillion and N21 trillion annually, depending on the size of the discount, the volume covered and whether the intervention applied to the entire crude barrel or only petrol sold domestically.
The council said Atiku should provide Nigerians with details on the proposed subsidy rate, annual spending ceiling, volume to be covered, funding source, mechanism for guaranteeing lower pump prices, safeguards against diversion and fraudulent claims, and whether amendments to the PIA would be required.
“An appropriation by the National Assembly may authorise expenditure, but it would not by itself resolve every regulatory question arising under the Petroleum Industry Act,” the statement said.
The APC-PCC also questioned Atiku’s current position in light of his previous support for downstream deregulation.
It recalled that Atiku, speaking at Lagos Business School in November 2022, described the petrol subsidy system as fraudulent and pledged to complete its removal.
The council also referred to Atiku’s August 25, 2026 statement on X in which he said, “I will restore it!”
It asked the former vice president to explain why he now supports restoring subsidy in another form and how his proposal would avoid what it described as the abuses, scarcity, smuggling and fiscal losses associated with the previous system.
The council also linked the deregulation of petroleum products to the administration in which Atiku served as vice president, noting that diesel was deregulated in June 2003 and aviation fuel subsequently moved to market pricing.
It said the Petroleum Industry Act, whose reform process began in 2000, ultimately established the legal framework for the downstream sector.
The APC-PCC contrasted Atiku’s proposal with the Tinubu administration’s emphasis on compressed natural gas (CNG) and electric mass transit as alternatives for reducing transportation costs.
It said more than 120,000 vehicles had been converted to CNG, while CNG and electric buses had reduced fares on some routes.
The council cited Borno, where it said CNG buses charge between N50 and N100 on routes where commercial operators charge N300 to N600, as well as the Suleja-Abuja route, where passengers reportedly pay N550 instead of about N800.
It also said Kaduna’s free CNG buses transported more than 1.4 million passengers in five months of 2025, saving commuters an estimated N1.39 billion in fares.
The council acknowledged the pressure caused by higher petrol prices but argued that the Tinubu administration’s policies were aimed at addressing transportation costs through alternative energy sources.
