The Presidency has rejected former Vice President Atiku Abubakar’s proposal to restore petrol subsidy, insisting that the Bola Tinubu administration will not reverse the policy.
The warning adds a fresh economic dimension to the 2027 presidential contest, with the government defending subsidy removal while Atiku campaigns on a different approach to reducing the burden of petrol prices on Nigerians.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, described Atiku’s proposal as retrogressive and fiscally unsustainable.
Onanuga argued that returning to the old subsidy system could undermine the reforms introduced by the Tinubu administration and create fresh pressure on government finances.
He also warned that such a move could discourage investment in domestic refining, including the Dangote Refinery and modular refineries.
Atiku, the presidential candidate of the African Democratic Congress, has argued that Nigerians have not benefited sufficiently from the savings generated by subsidy removal.
However, he has said his proposal is not a return to the previous opaque subsidy regime.
According to Atiku, the alternative would involve controlled support linked to domestic refining, with subsidies capped, properly budgeted and tied to verifiable production and consumer benefits.
He has also proposed mechanisms to ensure that crude allocated to domestic refineries is properly tracked and that cheaper crude feedstock translates into lower prices for consumers.
The Presidency, however, maintains that the removal of subsidy has generated significant revenue for the federation.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said subsidy removal generated N15.8tn for the federation between June 2023 and December 2025.
He said N5.4tn went to the Federal Government, while N10.4tn was shared among states and local governments.
President Tinubu scrapped the petrol subsidy on May 29, 2023, shortly after assuming office.
The policy pushed petrol prices sharply upward and contributed to higher transportation, food and living costs, triggering sustained public complaints over the cost of living.
Economists remain divided over Atiku’s proposal.
Prof Uche Uwaleke, President of the Capital Market Academics of Nigeria, said the debate should focus on whether scarce public resources could be deployed in a more economically sustainable manner.
Prof Ken Ife also warned against returning to a blanket consumption subsidy, arguing that government support should focus on production rather than consumption.
But some Nigerians affected by the rising cost of living said subsidy removal had brought severe hardship without corresponding improvements in their standard of living.
The disagreement is increasingly becoming a major economic policy issue ahead of the 2027 presidential election, with the two camps offering sharply different answers to the question of how Nigeria should manage petrol prices and public finances.