Former Vice President and African Democratic Congress, ADC, presidential candidate, Atiku Abubakar, has accused the Federal Government of granting tax incentives and other financial benefits to oil companies while Nigerians continue to face high petrol prices and rising living costs.
Atiku made the allegation in a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu.
He criticised President Bola Tinubu’s decision to remove the petrol subsidy, arguing that the policy was inconsistent with the government’s continued use of tax credits, concessions and other incentives to support petroleum investors.
“Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes,” Atiku said.
He explained that deep offshore oil and gas incentives allow eligible projects to receive production tax credits of between $3 and $4.50 per barrel, while other incentives could increase the total benefit to as much as $11.50 per barrel in some cases.
“So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?” he asked.
Atiku also questioned the Federal Government’s claim that petrol subsidy had been completely removed.
He cited the audited accounts of NNPC Limited, which he said recorded about N4.84 trillion in energy security expenses and related shortfalls in 2023, rising to approximately N7.13 trillion in 2024.
According to him, NNPC attributed part of the expenses to the difference between the exchange rate used in determining regulated Premium Motor Spirit, PMS, prices and the rate applicable when import obligations were settled.
“So, where exactly did the subsidy go? If Nigerians were paying market prices because ‘subsidy is gone’, why was the Federation still carrying trillions of naira in under recovery and energy security costs?” Atiku asked.
He argued that the government should not focus on the terminology used to describe the payments because public funds were still being deployed to cover the difference between the cost of petrol and its selling price.
Atiku said his proposed economic recovery programme would not restore the previous subsidy system, which he described as open ended and opaque.
Instead, he proposed a targeted and capped intervention that would be properly budgeted and independently audited.
He said the programme would be linked to increased local production and supported by measures to expand refining capacity, strengthen competition and restore household purchasing power.
“You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform,” Atiku said.
The ADC presidential candidate also called for greater transparency regarding tax credits, remissions and other incentives granted to companies operating in the petroleum sector.
He demanded details of beneficiaries, the revenue involved and the investments delivered in return, while insisting that Nigerian investors should have fair and transparent access to similar incentives.
Atiku maintained that the success of economic reforms should ultimately be measured by their impact on citizens’ living standards rather than the level of hardship Nigerians are able to endure.
His comments come after he pledged last week to restore petrol subsidy if elected president in 2027.
President Tinubu subsequently criticised the proposal, describing Atiku as “ignorant of governance and the economy.”
