By Seun Ibiyemi
The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged African Democratic Congress (ADC) presidential candidate Atiku Abubakar to disclose how he would fund and implement his proposed production subsidy for locally refined petrol.
The council said the proposal, which Atiku says would reduce petrol pump prices, requires clarification on its cost, legal basis and mechanism for ensuring that the benefit reaches consumers.
The APC-PCC spokesman, Dele Alake, raised the questions in a statement issued on Sunday, following Atiku’s press conference in Abuja where the former vice-president reiterated his proposal and called for lower petrol and diesel prices.
The council cited Section 205(1) of the Petroleum Industry Act (PIA) 2021, which provides for wholesale and retail prices of petroleum products to be determined under unrestricted free-market conditions.
It also referred to a recent statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it does not fix petrol pump prices or issue administrative price templates except where statutory conditions for intervention are met. The regulator said no market failure warranting such intervention had been declared.
According to the APC-PCC, Atiku must therefore clarify whether refiners receiving government support under his proposed scheme would be required to sell petrol at a prescribed price.
The council said if such a price condition would apply, Atiku should identify the legal framework that would permit the government to impose it.
It added that if refiners would remain free to determine their prices, Atiku should explain how government support to producers would guarantee cheaper petrol for consumers.
The APC-PCC also questioned the potential financial burden of the proposal, particularly if the intervention involves supplying crude oil to domestic refineries at preferential prices.
Alake said any discount on crude supplied to local refiners could affect the value accruing to the Federation and, consequently, government revenues.
He asked Atiku to disclose the proposed subsidy rate, annual spending ceiling and volume of crude or petrol that would qualify for the intervention.
The council also demanded details of the source of funding, safeguards against diversion and smuggling, and the mechanism that would ensure that consumers actually benefit from the subsidy.
The APC-PCC said an appropriation by the National Assembly would authorise expenditure but would not, by itself, resolve regulatory questions arising under the PIA.
It therefore asked Atiku to clarify whether his proposal would require amendments to the petroleum law.
The council also questioned the former vice-president’s current position on petrol subsidy in relation to his previous support for downstream deregulation.
Alake recalled that Atiku had described the petrol subsidy system as fraudulent at Lagos Business School in November 2022 and had pledged to complete its removal.
He also cited Atiku’s August 25, 2026 statement announcing that he would restore subsidy if elected president.
The APC-PCC asked the ADC candidate to explain how the proposed production subsidy would differ from the previous subsidy regime and how the new arrangement would address concerns over smuggling, scarcity and fiscal losses.
Atiku has said his proposed intervention would be targeted at petroleum products refined locally and sold to Nigerians, with imported products excluded. He has also said the scheme would operate within a spending limit, require National Assembly approval and be independently audited.
The APC-PCC contrasted Atiku’s proposal with the Tinubu administration’s focus on alternative energy sources, particularly compressed natural gas (CNG) and electric mass transit.
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Alake said the government had converted more than 120,000 vehicles to CNG while expanding supporting infrastructure across the country.
The council also cited CNG and electric bus initiatives in states including Borno, Niger, Kaduna, Adamawa and Abia as measures aimed at reducing transportation costs.
The APC-PCC acknowledged the pressure created by higher petrol prices but maintained that the government was pursuing measures to cushion the impact on households and businesses.
It said the Nigerian Midstream and Downstream Petroleum Regulatory Authority was working with the Federal Competition and Consumer Protection Commission to tackle price-gouging, while collaboration with the Nigeria Customs Service was aimed at preventing the diversion of petroleum products across Nigeria’s borders.
The council urged Atiku to publish a detailed policy document and obtain an independent legal and fiscal assessment of his proposed production subsidy.
Alake said the APC-PCC’s position was that any intervention in the downstream petroleum sector should be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.
