File: Former Vice President and presidential candidate of the African Democratic Congress, Atiku Abubakar.
The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, to explain the legal and fiscal framework for his proposed production subsidy on locally refined petrol.
In a statement issued on Sunday, APC-PCC spokesman Dele Alake said Atiku must explain how the proposal would operate within the Petroleum Industry Act (PIA) 2021 and how the Federal Government would finance the intervention.
The statement followed Atiku’s call on President Bola Tinubu on Friday to reduce petrol and diesel prices and his proposal for a production subsidy on locally refined petroleum products as a means of lowering pump prices.
Alake said the proposal raised “important legal, fiscal and practical questions,” citing Section 205(1) of the PIA, which provides that wholesale and retail prices of petroleum products should be determined under unrestricted free-market pricing conditions.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also stated on Saturday that it does not set petrol pump prices or issue administrative pricing templates except where statutory conditions for intervention are met. The regulator said no market failure had been declared.
Against this backdrop, Alake asked Atiku to clarify whether refineries receiving the proposed subsidy would be required to sell petrol at a government-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.
“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 APC-PCC spokesman also demanded details of the estimated cost of the proposal and its funding source.
According to the council, Atiku had previously suggested that the intervention could involve supplying domestic refineries with crude oil at preferential prices. It argued that such a discount could reduce the revenue accruing to the Federation and, consequently, funds available to the federal, state and local governments.
The council estimated that the proposed subsidy could cost between N17 trillion and N21 trillion annually, depending on factors including the size of the discount, the volume covered and whether the intervention would apply to an entire crude oil barrel or only petrol sold domestically.
It said Atiku should provide details on the proposed subsidy rate, annual spending limit, volume of crude or petrol covered, funding source, mechanism for ensuring lower pump prices, safeguards against diversion and smuggling, and whether amendments to the PIA would be necessary.
APC Questions Atiku’s Previous Position on Subsidy
Alake also questioned Atiku’s current position in light of his previous support for downstream deregulation.
He recalled that Atiku, speaking at the Lagos Business School in November 2022, described the petrol subsidy system as fraudulent and pledged to complete its removal.
Alake also cited an August 25, 2026 post by Atiku on X in which the former vice president wrote, “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,” Alake said.
The APC-PCC spokesman further recalled that diesel was deregulated in June 2003 and aviation fuel under the administration of former President Olusegun Obasanjo, during which Atiku served as vice president.
The council noted that petrol was the last major petroleum product to remain under the old subsidy regime, which was scheduled to end in June 2023 under the PIA.
It also said the reform process that eventually produced the PIA began in 2000, during Atiku’s first term as vice president, and challenged him to explain how his latest proposal would fit into the existing legal and regulatory framework.
APC Highlights CNG, Electric Transport Initiatives
The APC-PCC contrasted Atiku’s proposed subsidy with the Tinubu administration’s emphasis on compressed natural gas (CNG) and electric mass transit as alternatives for reducing transportation costs.
The council said more than 120,000 vehicles had been converted to CNG, while CNG and electric bus programmes had helped reduce fares on some routes.
Citing a statement by Tinubu on Saturday, Alake said the President had told governors on August 27 that “from October 1, more Nigerians should begin to see measurable reductions in transportation costs.”
The council also cited developments in Borno, Niger, Kaduna, Adamawa and Abia states as examples of reduced transportation costs.
However, the APC-PCC criticised Atiku’s proposal, arguing that it could recreate some of the problems associated with the former subsidy regime.
“In contrast, Atiku is reaching into Nigeria’s past with another subsidy scheme that will enrich smugglers in particular,” the statement said.
The council said the government would continue to support a deregulated downstream petroleum market, which it argued had encouraged greater investment in domestic refining.
It cited the Dangote Petroleum Refinery, saying the facility had reached its nameplate capacity of 650,000 barrels per day and reportedly achieved 700,000 barrels per day during performance tests. Recent reports have also put the refinery’s operating capacity at about 700,000 barrels per day and its planned initial public offering at about N2.15 trillion.
APC Acknowledges Pressure on Petrol Prices
The APC-PCC acknowledged the impact of higher petrol prices on Nigerians and said the Tinubu administration would continue implementing measures aimed at easing economic pressure.
“Petrol sold for about ₦830 per litre before the Middle East crisis pushed crude oil prices above $100 per barrel. A de-escalation of the crisis could help reduce crude oil prices and, consequently, the pump prices of petrol and diesel, not just in Nigeria, but worldwide,” the statement said.
It added that the NMDPRA was working with the Federal Competition and Consumer Protection Commission on alleged price-gouging, while the Nigeria Customs Service was being engaged to tackle the diversion of petroleum products across Nigeria’s borders.
The APC-PCC called on Atiku to publish a detailed policy document alongside an independent legal and fiscal analysis of his proposed subsidy programme.
“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” Alake said.
He also urged Atiku to study the PIA, accusing the former vice president of being “out of touch with reality and the oil sector’s current dynamics.”
