Explain legal, fiscal basis for petroleum subsidy return proposal, APC-PCC challenges Atiku

The All Progressives Congress Presidential Campaign Council (APC – PCC) has challenged former Vice President Atiku Abubakar to explain the legal and fiscal basis of his proposed “production subsidy” for locally refined petrol.

Atiku, who is the candidate of the African Democratic Congress, (ADC), had at a press conference in Abuja Friday reiterated his plan to reduce petrol pump price and he asked President Bola Tinubu to copy his idea and do the same thing.

In a statement released Sunday in Abuja by its apokesman, Dr. Dele Alake, the APC Presidential Campaign Council said the proposal raises important legal, fiscal and practical questions that Atiku must answer.

The Council cited Section 205(1) of the Petroleum Industry Act, PIA, 2021, which provides that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products.

“Atiku should therefore explain whether a refinery receiving his 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.

“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations. Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices.”

The statement also listed seven questions Atiku must answer, including subsidy rate, annual spending ceiling, volume of crude or petrol covered, source of funding, mechanism for lower pump prices, safeguards against diversion and smuggling, and whether PIA amendment would be required.

The APC Campaign Council said Atiku must reconcile his latest position with his previous support for deregulation, recalling that in November 2022 at Lagos Business School, he described petrol subsidy as fraudulent and pledged to complete its removal.

“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. If Atiku intends to amend the law, he should say so plainly.

“His latest position must also be reconciled with his previous support for downstream deregulation. In November 2022 at the Lagos Business School, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal. He reminded his audience that he chaired the committee that removed its first and second phases, and promised to complete the process. On 25 August 2026, he announced on X, ‘I will restore it!’

“He must explain why he now advocates restoring subsidy in another form and how his proposed arrangement would avoid the abuse, scarcity, smuggling and fiscal losses associated with the old system.”

The Council said President Tinubu’s administration has instead focused on lower-cost alternatives like Compressed Natural Gas, CNG, and electric mass transit, noting over 120,000 vehicles converted to CNG and fare reductions of 31 to 83 percent on routes served in seven states and FCT.

In contrast, it said Atiku is reaching into the past with another subsidy scheme, urging Nigerians to ignore politicians who want to return to the subsidy era of debts, queues and smuggling.

The Campaign Council concluded by stating that every downstream intervention must be lawful, transparent, properly costed and capable of delivering measurable benefits, urging Atiku to provide a detailed policy document and independent legal and fiscal analysis.

“Nigeria will continue to move forward with a deregulated market that has supported increased investment in domestic refining. The Dangote Petroleum Refinery has reached its nameplate capacity of 650,000 barrels per day and reportedly achieved 700,000 barrels per day during performance tests. The company has also launched an initial public offering targeting ₦2.1 trillion for expansion.”