The Presidency has rejected former Vice President Atiku Abubakar’s proposal to introduce a new fuel subsidy model, saying the plan must be backed by clear figures, funding sources and legal details.
In a statement by Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, the Presidency accused Atiku of proposing a return to a fuel subsidy system it described as costly and prone to abuse.
It said Atiku had the constitutional right to propose alternative economic policies but argued that Nigerians deserved to know how a new subsidy programme would be funded and implemented.
The Presidency said the Petroleum Industry Act (PIA) had provided for the removal of petrol subsidy by the end of June 2023, adding that Tinubu only brought the policy forward by a few weeks.
According to the statement, the government previously carried the cost of keeping petrol prices below the actual cost of supply, creating a major burden on public finances.
The Presidency also disputed Atiku’s claim of a large subsidy savings, saying the government still had outstanding subsidy-related obligations.
The statement said Nigeria’s petroleum sector had changed significantly since 2023, particularly with the growth of domestic refining.
It cited the Dangote Refinery and other local refineries as part of a shift towards producing petrol within Nigeria rather than relying heavily on imports.
The Presidency argued that restoring a broad fuel subsidy could affect the growth of local refining and increase pressure on public finances.
It also said funds previously used to support petrol price discounts were now available to the three tiers of government through federation revenue sharing.
The Presidency said the government shared about N3 trillion among the federal, state and local governments in July, describing the figure as evidence of improved government revenues.
However, it acknowledged that higher petrol and transportation costs have placed pressure on households and businesses.
The statement said the Tinubu administration was promoting Compressed Natural Gas (CNG) as a cheaper alternative to petrol for vehicles and businesses.
It said CNG could reduce energy costs for taxis, buses and distribution vehicles and cited the use of CNG trucks by major companies.
The Presidency challenged Atiku to provide details of his proposed subsidy plan, including its annual cost, funding source and legal requirements.
It also asked whether implementing the proposal would require changes to existing petroleum laws and how subsidy payments would be protected from the abuses associated with the previous system.
The Presidency said Nigerians should have a full debate on the cost of living and economic policy but insisted that political promises must be supported by clear fiscal calculations.
It urged political actors to explain the economic and legal implications of their policies before seeking Nigerians’ support in the 2027 elections.