Why I’ll bring back fuel subsidy if elected – Atiku

Former Vice-President Atiku Abubakar has explained that his plan to restore fuel subsidy is aimed at supporting local refining and reducing the cost of petrol, rather than subsidising imported fuel.

Atiku made the clarification 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 enable local refineries to produce fuel at lower costs, with the benefits passed on to consumers.

Atiku explains proposed production subsidy

Atiku said his proposal should not be confused with the subsidy arrangement that supported imported petrol, stressing that his focus would be on strengthening domestic production.

He explained that government would support crude oil refined in Nigeria so that domestic refineries could operate at lower production costs and make petrol available to Nigerians at more affordable prices.

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

“I choose the Aba shoemaker,” he said.

According to him, the same principle would be applied to the petroleum sector, with government supporting local refining rather than spending public resources to subsidise imported fuel.

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

‘I want bus fares, food costs to come down’

The former vice-president said the objective of his proposed subsidy goes beyond reducing the price displayed at petrol stations, arguing that lower fuel costs would have wider effects on the economy.

He said cheaper petrol could reduce transportation costs and the amount businesses spend moving goods and services across the country.

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

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

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

Atiku targets cost-of-living crisis

Atiku said his ultimate objective was to put more money in the pockets of Nigerians by reducing what households and businesses spend on fuel and transportation.

He argued that when transportation and energy costs fall, the impact would extend to food distribution and other essential areas of daily life.

The former vice-president said his proposed production subsidy was therefore intended as part of a broader strategy to tackle the cost-of-living crisis and make basic necessities more affordable.

“I will make life affordable again. I will make Nigeria affordable again. It is a promise,” Atiku said.

In another post responding to a prayer from a follower, Atiku urged Nigerians to help explain his proposed production subsidy, particularly its potential impact on women and families.

He said lower fuel costs would reduce transportation expenses and make it easier for women who depend on small businesses and daily trading activities to operate.

According to him, cheaper transportation and energy could also contribute to lower food prices and reduce the amount families spend on other household necessities.

“That is what my production subsidy is about: support what we refine here, create jobs here, reduce the cost of fuel here, and make everyday life more affordable for Nigerian families,” he said.

Atiku’s explanation comes amid continued debate over fuel pricing and the broader economic impact of the removal of petrol subsidy. His proposal places emphasis on domestic refining, lower production costs and the use of government support to make locally refined petrol more affordable to Nigerians.