The Presidential Campaign Council of the All Progressives Congress (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.
Atiku had, at a press conference in Abuja on Friday, reiterated his proposal to subsidise locally refined petrol as a way of reducing pump prices. He also called on President Bola Tinubu to reduce the prices of petrol and diesel.
In a statement issued on Sunday and signed by the APC-PCC spokesperson, Dele Alake, the council said Atiku’s proposal raised “important legal, fiscal and practical questions” that required clarification.
The council cited Section 205(1) of the Petroleum Industry Act (PIA) 2021, which provides that unrestricted free-market conditions shall determine the wholesale and retail prices of petroleum products.
It also referenced a recent statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it does not fix pump prices or issue administrative price templates except where statutory conditions for intervention are met.
“‘At the moment, no such market failure has been declared,’ NMDPRA said,” the statement quoted the regulator as saying.
The APC-PCC consequently asked Atiku to explain whether refiners that would benefit from his 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,” the council said.
It added that if the answer was no, Atiku should explain how government support to refiners would guarantee lower pump prices for consumers.
“Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices,” it said.
The council also demanded details of the financial implications of the proposal, particularly Atiku’s suggestion that the intervention could involve preferentially priced crude oil for domestic refineries.
According to the APC-PCC, any discount on crude supplied to local refineries would reduce the value accruing to the Federation and, consequently, the revenue available to the federal, state and local governments.
The council argued that, based on publicly reported refinery throughput and domestic petrol-supply figures, the cost of the proposed subsidy could reach between N17 trillion and N21 trillion annually, depending on the size of the discount, the volume covered and whether the intervention would apply to the entire barrel or only petrol sold domestically.
It therefore asked Atiku to provide details of the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, funding source, mechanism for guaranteeing lower pump prices, safeguards against diversion, smuggling and fraudulent claims, as well as whether amendments to the PIA would be required.
The APC-PCC noted that while an appropriation by the National Assembly could authorise government expenditure, such an appropriation would not necessarily resolve all regulatory questions arising under the PIA.
“If Atiku intends to amend the law, he should say so plainly,” the council said.
The APC campaign body also questioned Atiku’s latest position on subsidy, noting that he had previously advocated the removal of petrol subsidies and supported downstream deregulation.
It recalled that in November 2022, while speaking at the Lagos Business School, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal.
According to the council, Atiku had reminded his audience that he chaired the committee that removed the first and second phases of subsidy and promised to complete the process.
It also cited his statement on August 25, 2026, in which he declared on X, “I will restore it!”
The APC-PCC asked the former vice-president to explain why he now supports restoring subsidy in another form and how his proposed arrangement would avoid the abuses, scarcity, smuggling and fiscal losses associated with the previous subsidy regime.
The council further traced the history of downstream deregulation to the administration of former President Olusegun Obasanjo, in which Atiku served as vice-president.
It said diesel was deregulated in June 2003, while aviation fuel also moved to market pricing under the same administration. Kerosene was deregulated by the Muhammadu Buhari administration in 2016, leaving petrol as the last major petroleum product under the old subsidy regime.
The council noted that the Petroleum Industry Act, which provided for the eventual end of the petrol subsidy regime, was the product of a reform process that began in 2000, during the first term of the Obasanjo-Atiku administration.
It therefore challenged Atiku to explain how his proposed production subsidy would align with the legal and regulatory framework established through that reform process.
The APC-PCC contrasted Atiku’s proposal with the Tinubu administration’s emphasis on alternative energy and transportation initiatives, particularly compressed natural gas (CNG) and electric mass transit.
It said the government had converted more than 120,000 vehicles to CNG, with thousands more converted privately, while efforts were ongoing with state governments to expand CNG infrastructure and cheaper transport options.
The council also quoted President Tinubu as saying that, following an agreement with the 36 state governors on August 27, “from October 1, more Nigerians should begin to see measurable reductions in transportation costs.”
According to the APC-PCC, commuters in seven states and the Federal Capital Territory were already paying between 31 per cent and 83 per cent less on routes served by CNG and electric buses.
It cited Borno State, where buses reportedly charge between N50 and N100 on routes where commercial operators charge between N300 and N600, and the Suleja-Abuja route in Niger State, where passengers pay N550 compared with about N800 charged by conventional operators.
The council also said Kaduna’s free CNG buses transported more than 1.4 million passengers in five months of 2025, saving commuters an estimated N1.39 billion in fares.
It added that alternative-energy transport in Adamawa State had reduced fares by as much as 50 per cent, while Abia State had deployed 40 electric buses and 20 charging stations.
The APC-PCC accused Atiku of seeking to return the country to a subsidy model that it said had historically encouraged smuggling and fiscal losses.
The council said the Tinubu administration would instead continue with a deregulated petroleum market, which it argued had encouraged greater investment in domestic refining.
It cited the Dangote Petroleum Refinery, saying the 650,000-barrels-per-day facility had reached its nameplate capacity and reportedly achieved 700,000 barrels per day during performance tests.
The council also noted that the refinery had launched an initial public offering targeting about N2.1 trillion to fund expansion.
The APC-PCC acknowledged the pressure caused by higher petrol prices on households, but said the Tinubu administration would continue to implement measures designed to cushion the impact.
According to the council, petrol sold for about N830 per litre before the Middle East crisis pushed crude oil prices above $100 per barrel.
It said any de-escalation of the crisis could reduce crude oil prices and consequently lower petrol and diesel prices globally.
The council added that the NMDPRA was working with the Federal Competition and Consumer Protection Commission to address alleged price-gouging, while the Nigeria Customs Service was working to curb the diversion of petroleum products across Nigeria’s borders.
The APC-PCC said every proposed intervention in the downstream petroleum sector must be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.
It called on Atiku to publish a detailed policy document and commission 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 council said.
The statement concluded with a political criticism of Atiku, quoting former President Olusegun Obasanjo’s description in his book, My Watch, of Atiku’s “propensity for poor judgment.”
“For a start, we recommend that Atiku read the PIA, as he appears out of touch with reality and the oil sector’s current dynamics,” the council said.
The statement was signed by Dele Alake, Spokesperson, APC Presidential Campaign Council, and dated September 20, 2026.