Former Vice President and presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar has defended his proposal for a subsidy on petrol.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, on Friday, Atiku said Dangote Refinery was right to oppose any policy that would compel private refineries to sell petroleum products at a loss.
However, he argued that his proposal was designed to reduce the cost of domestic refining rather than force refiners to absorb losses.
“We are restoring subsidy through a production subsidy model, not an import subsidy model,” Atiku said.
According to him, the proposed model would provide support for crude solely refined in Nigeria, enabling domestic refineries to reduce production costs and eventually sell petrol at more affordable prices.
Atiku explained that, unlike an import subsidy that supports petroleum products refined abroad, his proposal would tie government support strictly to crude refined domestically.
“If you do not refine in Nigeria, you do not qualify. This is not a subsidy for foreign refineries.
“It is not a subsidy for importers. It is not a subsidy for middlemen. It is a subsidy for Nigerian production,” he said.
The former vice president said the proposed intervention would include safeguards such as a fiscal ceiling, maximum support per barrel, independent verification of crude supplied to refineries, electronic tracking of crude intake and refined output, domestic supply obligations and independent audits.
He also rejected the idea of government imposing an arbitrary pump price while leaving domestic refineries to bear the financial burden.
“If government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then government must pay for that relief openly. It must be budgeted. It must be capped. It must be audited,” Atiku said.
He argued that Nigeria could protect the commercial viability of domestic refineries while also ensuring that consumers benefit from lower production costs.
Atiku further criticised the Tinubu administration over the rising cost of fuel, transportation, food and business operations.
While accusing the government of presenting economic hardship as an unavoidable consequence of reform, he maintained that his proposed production subsidy would support domestic refining, create jobs, attract investment and reduce the cost of petroleum products for Nigerians.
“Subsidise Nigerian production, not foreign importation. Produce here. Refine here. Create jobs here. Pay less here,” Atiku said.
