Atiku Unveils New Fuel Subsidy Plan, Targets Cheaper Petrol

Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has proposed a new petroleum subsidy model aimed at promoting domestic refining and reducing fuel costs for Nigerians.

Atiku said the proposal, contained in his Economic Recovery Plan (AERP) 2027, would shift government subsidy from fuel imports to local production while ensuring that public support delivers measurable benefits to consumers.
Under the plan, qualifying Nigerian refineries would receive crude at a preferential price, subject to strict conditions on production, efficiency, transparency and domestic supply.
Atiku said every subsidised barrel would be tracked from crude allocation through refining to final delivery to consumers. He stressed that refineries would not be allowed to benefit from cheaper crude without transferring the savings to Nigerians through lower-priced petroleum products.
The ADC candidate also proposed an annual subsidy ceiling to be approved through the federal budget, with all expenditure publicly disclosed and independently audited.
According to him, the policy would apply equally to public and private refineries that meet the required conditions, irrespective of ownership or political connections.
He also promised sanctions against operators who divert subsidised crude or petroleum products, manipulate production records or fail to meet domestic supply obligations.
Atiku explained that the proposed subsidy would not be permanent, saying government support would gradually decline as local refining capacity expands, production costs decrease and competition improves.
He argued that increased domestic refining would eventually reduce fuel and transportation costs, support businesses and help bring down the prices of food and other goods.
Atiku also criticised President Bola Tinubu’s 2023 decision to remove the petrol subsidy, questioning petroleum-related expenses recorded by the Nigerian National Petroleum Company Limited after the announcement.
He said Nigerians deserved clearer explanations of such expenses and called for greater transparency in the management of Federation revenues.
Atiku further called for a public reconciliation of what he described as about ₦30 trillion in revenues, deductions, savings, transfers and related funds. He stressed that he was not alleging that the money was stolen.
He said his proposed model would be guided by four principles: target the subsidy, cap the cost, track every barrel and audit the spending.
Atiku said the ultimate objective was to establish a strong domestic refining industry capable of eventually operating without government subsidy.