The All Progressives Congress Presidential Campaign Council (APC‑PCC) has publicly challenged the legal foundation of presidential candidate Atiku Abubakar’s proposed production subsidy for locally refined petrol, saying the plan lacks a clear framework and may not lower fuel prices for Nigerians.
In a statement issued on Sunday, APC spokesperson Dele Alake said the ADC’s proposal, announced at a press conference in Abuja on Friday, raises “legal, financial and practical questions that need clear answers before it can be considered.” The council cited Section 205(1) of the Petroleum Industry Act 2021, which states that wholesale and retail petroleum prices should be determined by free‑market conditions, and a statement from the Nigerian Midstream and Downstream Petroleum Regulatory Authority that it does not fix petrol prices except under conditions allowed by law.
Alake added that the subsidy would “guarantee lower pump prices if refiners were not legally required to sell fuel at a fixed price.” He urged Atiku to explain how public support to refiners would translate into lower prices at filling stations, warning that without an enforceable mechanism, refiners could receive government support while consumers continue to pay market prices.
The APC‑PCC also asked Atiku to disclose the subsidy’s cost and funding source. It warned that selling crude oil to local refineries at discounted prices could reduce revenue shared by the Federal, state and local governments. According to the council, the proposed subsidy could cost between N17 trillion and N21 trillion annually, depending on the discount level and the amount of crude covered.
In its statement, the council challenged Atiku to answer seven key questions, including the proposed subsidy rate, annual spending limit, source of funding, safeguards against smuggling and diversion, and whether he intends to amend the Petroleum Industry Act. It also recalled Atiku’s earlier support for fuel subsidy removal, noting that he had described the old subsidy system as fraudulent during his 2022 campaign.
The APC‑PCC noted that the Tinubu administration has instead focused on expanding compressed natural gas (CNG) and electric mass transit as alternatives to reduce transportation costs. It referenced President Bola Tinubu’s recent remarks that more Nigerians would experience lower transport costs from 1 October through the CNG programme.
“Any intervention in the downstream petroleum sector must be lawful, transparent and properly costed,” the council said, urging Atiku to publish a detailed policy document and an independent legal and fiscal analysis of his proposal. “Until he does so, his production‑subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” the APC‑PCC added.
<small>Source: Daily Post Nigeria — read the original story there.</small>
