The African Democratic Congress, ADC, has rejected claims by the Presidency that former Vice President Atiku Abubakar’s proposal to reduce petrol prices to about N600 per litre amounts to a return to Nigeria’s former fuel subsidy regime.
The party said the proposal was designed as a controlled production incentive for domestic refineries to reduce petrol costs while strengthening local refining capacity.
ADC National Publicity Secretary, Bolaji Abdullahi, made the clarification while responding to criticism from the Presidency over Atiku’s proposal.
Abdullahi faulted the Presidency’s projected N19.1 trillion cost, arguing that the figure failed to properly account for the structure of Atiku’s proposal and the wider economic benefits of cheaper locally refined petrol.
“The Presidency has based its argument on a projected N19.1 trillion cost without properly considering how Atiku’s proposal is structured or the wider economic benefits of cheaper fuel produced locally,” he said.
He added, “We are at a loss how the presidency conjured up this phantom figure. But we do not agree with it.”
According to the ADC spokesman, Atiku’s plan would have a defined fiscal limit and monitoring mechanisms covering the movement of crude from refinery intake through the production process to finished petroleum products.
The party argued that the Presidency was attacking the former subsidy regime rather than addressing the structure of Atiku’s proposed intervention, which it described as a controlled and targeted incentive.
The ADC also questioned the government’s position on incentives provided to oil producers while rejecting measures aimed at reducing the impact of high petrol prices on Nigerians.
Abdullahi cited offshore oil production incentives that can reach $11.50 per barrel, questioning why a similar but controlled incentive for domestic refineries should be rejected.
“If Nigeria can provide a production-linked fiscal incentive of up to $11.50 per barrel to stimulate offshore oil production, why is a carefully controlled crude-input incentive for domestic refineries dismissed as economic madness when its objective is to make fuel cheaper for Nigerians and build domestic refining capacity?” he asked.
The ADC further argued that the economic consequences of maintaining high petrol prices should be considered when assessing the cost of Atiku’s proposal.
The party said expensive petrol has contributed to rising transportation costs, food prices, production expenses and the broader cost of living crisis.
It maintained that the proposed intervention would be capped, audited and traceable, while potentially reducing dependence on petroleum imports, conserving foreign exchange and strengthening Nigeria’s domestic refining industry.
