Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has proposed a new petroleum subsidy model focused on domestic refining and lower fuel costs for Nigerians.
Atiku said the plan, contained in his Economic Recovery Plan (AERP) 2027, would move subsidy from fuel imports to local production and ensure that government support produces measurable benefits for consumers.
He said qualifying Nigerian refineries would receive crude at a preferential price, subject to strict conditions on production, efficiency, transparency and domestic supply.
According to Atiku, every subsidised barrel would be tracked from crude allocation to refining and final delivery to consumers.
He said refineries would not be allowed to benefit from cheaper crude without passing the savings to Nigerians through lower-priced petroleum products.
The ADC candidate also proposed an annual subsidy ceiling approved through the federal budget. He said the amount spent would be publicly disclosed and independently audited.
Atiku said the plan would apply equally to public and private refineries that meet the required conditions, regardless of ownership or political connections.
He also promised sanctions against operators that divert subsidised crude or petroleum products, manipulate production records or fail to meet domestic supply obligations.
Atiku said the proposed subsidy would not be permanent. He explained that government support would gradually reduce as local refining capacity grows, production costs fall and competition improves.
He argued that increased domestic refining would eventually reduce fuel and transportation costs, support businesses and help lower the cost of food and other goods.
Atiku also criticised President Bola Tinubu’s 2023 decision to remove the petrol subsidy, questioning petroleum-related expenses recorded by the Nigerian National Petroleum Company Limited after the announcement.
He said Nigerians deserved clearer explanations of such expenses and called for greater transparency in the management of Federation revenues.
Atiku further called for a public reconciliation of what he described as about ₦30 trillion in revenues, deductions, savings, transfers and related funds. He stressed that he was not alleging that the money was stolen.
He said his proposed model would be based on four principles: target the subsidy, cap the cost, track every barrel and audit the spending.
Atiku said the ultimate goal was to build a strong domestic refining industry that would eventually operate without government subsidy.