By Dennis Okechukwu
The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice-President Atiku Abubakar to provide the legal, fiscal and operational details of his proposed production subsidy for locally refined petrol.
Atiku, the African Democratic Congress (ADC) presidential candidate for the 2027 election, had proposed a transparent production subsidy for petroleum products refined in Nigeria and sold to Nigerian consumers, with imported products excluded. He said the scheme would have a fixed spending limit, National Assembly approval and independent audits.
In a statement issued on Sunday, September 20, and signed by its spokesman, Dele Alake, the APC-PCC questioned how the proposal would operate within the framework of the Petroleum Industry Act (PIA) 2021.
The council’s position followed a recent clarification by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that petrol prices are determined by market forces under the PIA.
The regulator cited Section 205(1) of the Act, which provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market conditions. It also said government intervention in pricing is limited to exceptional circumstances involving formally established market failure, adding that no such market failure had been declared.
The APC-PCC therefore asked Atiku to clarify whether refiners benefiting from his proposed subsidy would be required to sell petrol at a government-prescribed price.
According to the council, if the answer is yes, Atiku should identify the legal framework that would allow government to impose such a condition and explain how it would comply with the PIA.
It also asked him to explain how the proposed subsidy would guarantee lower pump prices if refiners were not legally required to pass the benefit on to consumers.
The council further demanded details of the anticipated cost of the policy and its funding mechanism.
It argued that if the proposal involved supplying crude oil to domestic refineries at preferential prices, the discount could reduce revenues accruing to the Federation and consequently affect funds available to the federal, state and local governments.
The APC-PCC claimed that, depending on the subsidy rate and volume covered, the proposed intervention could cost between N17 trillion and N21 trillion annually.
It said Atiku should disclose the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, funding source, mechanism for ensuring lower pump prices, safeguards against diversion and fraudulent claims, and whether amendments to the PIA would be necessary.
The council also challenged Atiku to reconcile his current position with his previous support for the removal of petrol subsidy.
It recalled that Atiku had described the petrol subsidy system as fraudulent during a 2022 engagement at Lagos Business School and pledged to complete its removal. The council also referenced his August 25, 2026 statement in which he said, “I will restore it!”
Atiku has since distinguished his proposal from the former import subsidy regime, arguing that his plan would support domestic production rather than imported petrol. He has also said the policy would be designed to reduce production costs and lower prices for consumers.
The APC-PCC nevertheless argued that the proposal required further explanation, particularly because Nigeria’s downstream petroleum sector now operates under a deregulated framework.
The council said deregulation of some downstream products began under the administration in which Atiku served as vice-president, citing the deregulation of diesel in 2003 and aviation fuel.
It added that the Petroleum Industry Act, which provides the current legal framework for the sector, was the product of a reform process that began more than two decades ago.
The APC-PCC contrasted Atiku’s proposal with the Tinubu administration’s efforts to reduce transportation costs through compressed natural gas (CNG) and electric buses.
According to the council, more than 120,000 vehicles have been converted to CNG, while CNG and electric mass-transit programmes have been deployed in several states.
It cited examples including Borno, where it said CNG buses charge between N50 and N100 on routes where commercial operators charge N300 to N600, and the Suleja-Abuja route, where passengers reportedly pay N550 instead of about N800.
The council also cited Kaduna’s CNG bus programme, saying more than 1.4 million passengers used the service in five months in 2025, with estimated fare savings of N1.39 billion.
It said the government was continuing to expand alternative-energy transport and vehicle-conversion programmes.
On domestic refining, the APC-PCC pointed to the Dangote Petroleum Refinery, which has a stated nameplate capacity of 650,000 barrels per day, arguing that the growth of domestic refining demonstrated the investment potential of the deregulated market.
The council acknowledged the pressure caused by rising petrol prices but maintained that global crude oil prices were an important factor in domestic pump prices. It said a reduction in international crude prices could consequently ease petrol and diesel prices.
The NMDPRA has separately said it is stepping up surveillance against price-gouging and other exploitative practices while maintaining that it does not administratively fix petrol pump prices.
The APC-PCC urged Atiku to publish a detailed policy document alongside independent legal and fiscal assessments of his proposed subsidy.
It said such details were necessary for Nigerians to assess the proposal’s financial implications, legal foundation and mechanism for delivering lower petrol prices.
The statement ended with a call on Atiku to study the provisions of the PIA and explain how his proposal would fit within the country’s current petroleum regulatory framework.