The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational framework behind his proposal to subsidise petrol produced by local refineries.
The council, through its spokesman, Dele Alake, asked Atiku to explain how his proposed “production subsidy” would be funded, enforced and reconciled with the Petroleum Industry Act (PIA) 2021.
Alake also questioned how the proposal differs from Atiku’s previous position supporting the removal of petrol subsidy and deregulation of the downstream petroleum sector.
The challenge came amid a recent clarification by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that petrol pump prices are determined by market forces under the PIA and are not administratively fixed by the regulator.
NMDPRA said Section 205(1) of the PIA provides for wholesale and retail petroleum product prices to be based on unrestricted free-market conditions. It added that government intervention is limited to exceptional circumstances involving formally established market failure.
Against this backdrop, Alake asked Atiku to clarify whether refineries benefiting from his proposed production subsidy would be required to sell petrol at a government-prescribed price.
“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations,” the statement said.
The APC-PCC argued that without an enforceable mechanism, government support to refiners might not necessarily translate into lower pump prices for consumers.
The council also demanded details of the estimated cost of the proposal, the source of funding and the volume of crude oil or petrol that would be covered.
Alake said Atiku’s earlier comments appeared to suggest that the proposed intervention could involve preferentially priced crude oil for domestic refineries, arguing that any discount on crude supplied for such a purpose could have implications for government revenue.
He therefore asked the former vice president to disclose the proposed subsidy rate, annual spending limit, volume of crude or petrol covered, funding source and mechanism for ensuring that consumers benefit through lower pump prices.
The council further demanded safeguards against diversion, smuggling and fraudulent claims, as well as clarification on whether amendments to the PIA would be required to implement the proposal.
“If Atiku intends to amend the law, he should say so plainly,” Alake said.
The APC-PCC also questioned Atiku’s current position on petrol subsidy, recalling his previous criticism of the subsidy regime.
It cited Atiku’s reported remarks at the Lagos Business School in November 2022, when he described the petrol subsidy system as fraudulent and pledged to complete its removal.
The council said Atiku’s August 25, 2026 declaration — “I will restore it!” — therefore required clarification on how his proposed subsidy would differ from the system he previously criticised. Atiku had publicly reaffirmed his pledge to restore petrol subsidy if elected in 2027.
The APC-PCC further questioned how the proposed arrangement would address issues it associated with the former subsidy regime, including smuggling, scarcity and fiscal losses.
It also referred to the history of downstream deregulation during the period when Atiku served as vice president, arguing that he should explain how his proposed intervention would fit into the current petroleum-sector regulatory framework.
Meanwhile, the APC-PCC defended the Tinubu administration’s emphasis on alternative energy sources, particularly compressed natural gas (CNG) and electric vehicles, as an alternative approach to reducing transportation costs.
President Bola Tinubu said on September 19 that more than 120,000 vehicles had been converted to CNG, with over 400 certified conversion centres and more than 90 CNG refuelling stations operating across the country.
Tinubu also said the Federal Government and the 36 state governments were working towards measurable reductions in transportation costs from October 1 under the National Affordable CNG Transit Programme.
The President cited examples of lower fares linked to CNG and electric transport, including routes in Borno and Niger states, while Abia State has deployed electric buses with subsidised fares.
The APC-PCC said the administration’s approach was aimed at reducing Nigeria’s exposure to international oil-price fluctuations by expanding domestic alternatives.
It acknowledged the pressure caused by rising petrol prices on households, businesses and transport operators, but maintained that the deregulated market means domestic petrol prices can be affected by movements in global crude oil prices.
The council concluded by challenging Atiku to publish a detailed policy document setting out the legal and fiscal basis of his proposed production subsidy.
“Every proposed intervention in the downstream sector must be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers,” Alake said.
The APC-PCC maintained that, until such details are provided, it considers the proposal insufficiently costed and lacking a clearly established legal and operational framework.
