ABUJA – The All Progressives Congress Presidential Campaign Council has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational framework for his proposed production subsidy on locally refined petrol.
The council said the proposal, which Atiku said would reduce pump prices, raised questions about its compatibility with the Petroleum Industry Act 2021, its funding and how it would guarantee cheaper petrol for consumers.
In a statement on Sunday, the spokesman for the APC Presidential Campaign Council, Dele Alake, said Section 205(1) of the PIA provides for wholesale and retail petroleum prices to be determined under unrestricted free-market conditions.
Alake cited a recent clarification by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which said it does not fix petrol prices or issue administrative price templates, adding that government intervention was restricted to exceptional circumstances involving a formally declared market failure.
He challenged Atiku to explain whether refiners 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,” Alake said.
He added that if refiners would not be required to reduce their pump prices, Atiku should explain how public support to producers would translate into cheaper petrol for consumers.
The APC spokesman also demanded details of the proposed subsidy’s cost and funding, saying it could run between N17tn and N21tn annually, depending on the level of crude discount, volumes covered and the structure of the intervention.
Alake asked Atiku to disclose the proposed subsidy rate, annual spending limit, volume of crude or petrol to be covered, funding source and mechanism for guaranteeing lower pump prices.
He also demanded safeguards against diversion, smuggling and fraudulent claims, as well as clarification on whether amendments to the PIA would be required.
The APC-PCC further questioned Atiku’s current position in relation to his previous support for downstream deregulation.
According to Alake, Atiku described petrol subsidy as fraudulent in November 2022 and pledged to complete its removal, but said on August 25, 2026, that he would “restore it.”
The council wants Atiku to explain how the proposed production subsidy differs from the former subsidy regime.
Alake also recalled that diesel was deregulated in 2003 under the Obasanjo administration, when Atiku was Vice President, while aviation fuel subsequently moved to market pricing.
He said the Tinubu administration had instead focused on alternative transport fuels, including compressed natural gas and electric buses, as part of efforts to reduce transportation costs.
According to the APC spokesman, commuters in some states and the Federal Capital Territory are already benefiting from lower fares on CNG and electric-bus routes.
He also pointed to increased domestic refining, citing the Dangote Petroleum Refinery’s 650,000-barrel-per-day nameplate capacity and ongoing expansion plans.
Alake said the government was also working with the NMDPRA, Federal Competition and Consumer Protection Commission and Nigeria Customs Service to address alleged price-gouging and illegal diversion of petroleum products.
He said the APC-PCC acknowledged the pressure rising petrol prices were putting on Nigerians but maintained that any intervention in the downstream sector should be lawful, transparent and properly costed.
Alake urged Atiku to publish a detailed policy document and obtain independent legal and fiscal assessments of his proposal.
He concluded by accusing the former Vice President of being out of touch with developments in the oil sector and advised him to study the Petroleum Industry Act.