By Adebola Muili
The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational basis of his proposed production subsidy for locally refined petrol.
The council made the demand in a statement issued on Sunday, September 20, by its spokesman, Dele Alake, following Atiku’s renewed call for a subsidy arrangement aimed at reducing petrol pump prices.
Atiku had, at a press conference in Abuja on Friday, reiterated his proposal for a “production subsidy” for locally refined petrol and called on President Bola Tinubu to reduce the prices of petrol and diesel.
Alake questioned how the proposed intervention would operate within the framework of the Petroleum Industry Act (PIA) 2021, particularly its provisions governing petroleum product pricing.
He cited Section 205(1) of the PIA, which provides for wholesale and retail prices of petroleum products to be determined under unrestricted free-market conditions.
The APC-PCC spokesman said Atiku should 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.
He also questioned how the proposed subsidy would translate into lower pump prices if refiners were not compelled to pass the benefit to consumers.
According to Alake, Atiku should disclose the estimated cost of the intervention and how it would be financed, particularly if it involved supplying crude oil to domestic refineries at preferential prices.
He argued that any discount on crude supplied to refiners could reduce the value accruing to the Federation and consequently affect revenues available to the federal, state and local governments.
The APC-PCC estimated that the proposed intervention could cost between N17 trillion and N21 trillion annually, depending on the size of the discount, the volume covered and whether the arrangement applied to all crude processed or only petrol produced for domestic consumption.
It therefore demanded details of the proposed subsidy rate, annual spending limit, volume of crude or petrol to be covered, source of funding and the mechanism that would guarantee lower pump prices.
The council also sought safeguards against diversion, smuggling and fraudulent claims, as well as clarification on whether amendments to the PIA would be required to implement the proposal.
Alake said an appropriation by the National Assembly could authorise government spending but would not, on its own, resolve all regulatory issues arising from the implementation of the proposal.
The council further questioned Atiku’s current position against his previous advocacy for the removal of petrol subsidy.
Alake recalled that Atiku, while speaking at the Lagos Business School in November 2022, had described the subsidy regime as fraudulent and pledged to complete its removal.
He also cited Atiku’s August 25, 2026 statement on X, in which the former vice president declared, “I will restore it!”
The APC-PCC spokesman said Atiku should explain how his proposed arrangement would differ from the former subsidy regime and how it would prevent problems associated with it, including smuggling, scarcity and financial leakages.
The council contrasted the proposal with the Tinubu administration’s focus on compressed natural gas (CNG) and electric mass transit as measures to reduce transportation costs.
It said more than 120,000 vehicles had been converted to CNG, while CNG and electric buses were operating on routes across several states.
Alake quoted President Tinubu as saying that more Nigerians should begin to experience measurable reductions in transportation costs from October 1, following an agreement reached with state governors on August 27.
The APC-PCC said interventions in the downstream petroleum sector should be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.
It urged Atiku to publish a detailed policy document alongside an independent legal and fiscal analysis of the proposed subsidy.
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