Atiku’s ₦600 Petrol Plan Not Return To Subsidy Regime — ADC Tells Presidency

The African Democratic Congress (ADC) has rejected the Presidency’s claim that former Vice President Atiku Abubakar’s proposal to reduce the price of petrol to about ₦600 per litre would amount to a return to Nigeria’s former fuel subsidy regime.

The party described Atiku’s proposal as a controlled production incentive for domestic refineries, arguing that the policy would help reduce the cost of petrol while strengthening Nigeria’s local refining capacity.

The ADC National Publicity Secretary, Bolaji Abdullahi, stated this while responding to the Presidency’s criticism of the proposal.

Abdullahi faulted the Presidency’s projection that the proposed policy could cost the government about ₦19.1 trillion, saying the figure failed to take into account the structure of the proposal and its potential economic benefits.

“The Presidency has based its argument on a projected N19.1 trillion cost without properly considering how Atiku’s proposal is structured or the wider economic benefits of cheaper fuel produced locally,” he said.

He added, “We are at a loss how the presidency conjured up this phantom figure. But we do not agree with it.”

According to Abdullahi, Atiku’s proposal would operate within a defined fiscal limit and include monitoring mechanisms to track crude oil from refinery intake through the production process to the final petroleum products.

The party argued that the Presidency was effectively attacking the previous fuel subsidy system rather than addressing the proposed controlled incentive, which it said was designed as an alternative to the old regime.

The ADC also questioned the government’s position on incentives provided to oil producers while rejecting measures it believes could reduce the burden of high petrol prices on Nigerians.

Abdullahi cited incentives for offshore oil production that could reach $11.50 per barrel, arguing that a similar but controlled incentive for domestic refineries should not automatically be dismissed.

“If Nigeria can provide a production-linked fiscal incentive of up to $11.50 per barrel to stimulate offshore oil production, why is a carefully controlled crude-input incentive for domestic refineries dismissed as economic madness when its objective is to make fuel cheaper for Nigerians and build domestic refining capacity?” he asked.

The ADC further maintained that the economic cost of keeping petrol prices high should be considered when assessing the viability of Atiku’s proposal.

According to the party, expensive petrol has contributed significantly to rising transportation costs, food prices, production expenses and the broader cost-of-living crisis facing Nigerians.

The party said the proposed incentive would be capped, audited and fully traceable, while potentially reducing dependence on imported petroleum products, conserving foreign exchange and encouraging greater investment in domestic refining.

The ADC therefore urged the Presidency to assess the proposal based on its potential economic impact and structure rather than equating it with the subsidy regime that was previously in place.