Former Vice-President Atiku Abubakar has said his proposed fuel subsidy would support petrol refined in Nigeria rather than imported fuel. He made the clarification on his ๐ account while responding to a follower who questioned his plan. โI am not restoring subsidy so that Nigeria can keep paying for imported petrol. I am restoring subsidy so that Nigerians can produce more at home, pay less for fuel, and keep more money in their pockets,โ Atiku said.
Atiku described the proposal as a production subsidy, distinguishing it from the previous system that supported imported petrol. He said the policy would reduce production costs for Nigerian refineries and allow consumers to access cheaper fuel.
He compared the plan with government support for local shoemakers in Aba. โIf government wants Nigerians to buy shoes more cheaply, it can spend public money making imported shoes cheaper, or it can support shoemakers in Aba to reduce their production costs so they can make more shoes here, employ more Nigerians and sell at more affordable prices,โ he said. โI choose the Aba shoemaker.โ
Atiku applied that principle to petroleum production, saying, โWe will support crude refined in Nigeria so our refineries can produce at a lower cost and you can pay less.โ His proposal would therefore tie the subsidy to crude processed by domestic refineries.
The proposal comes as Dangote Refinery expands its operations. Reuters reported that the refinery operates at 700,000 barrels per day and plans to increase capacity to 1.4 million barrels per day by 2029. The company also recorded a $1.82 billion after-tax profit in the first half of 2026.
Atiku has also addressed concerns about government-controlled petrol prices. He said Dangote Refinery had raised a legitimate concern about selling fuel below production cost. โYou cannot announce a politically convenient petrol price and quietly dump the cost on the refinery. That is not policy. That is confiscation by another name,โ he said.
According to Atiku, the scheme would include a maximum support level per barrel, electronic tracking of crude supplied to refineries and checks on refined output. He also proposed independent audits to monitor government spending.
He said only refineries that process crude in Nigeria would qualify. โIf you do not refine in Nigeria, you do not qualify,โ Atiku said, adding that importers, foreign refineries and middlemen would not receive the support.
Atiku also linked lower fuel costs with transport and food distribution expenses. โI want the bus fare you pay every morning to come down. I want the cost of taking food from the farm to the market to come down. I want the trader to spend less. I want the barber, tailor, welder and small business owner to spend less on energy,โ he said.
He said any further reduction in petrol prices beyond savings from cheaper crude should come through a budgeted government payment. โIt must be budgeted. It must be capped. It must be audited,โ Atiku said.
