The APC Presidential Campaign Council has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational framework for his proposal to subsidise locally refined petrol, arguing that the plan could amount to a return to the subsidy regime without clear safeguards for public funds or consumers.
Atiku reiterated his proposal for a “production subsidy” for locally refined petrol at a press conference in Abuja on Friday, saying the measure would help reduce pump prices. He also called on President Bola Tinubu to cut the cost of petrol and diesel.
In a statement signed by its spokesman, Dele Alake, on Sunday, the APC-PCC questioned how the proposed subsidy would operate within the Petroleum Industry Act (PIA) 2021, particularly its provisions on market-based pricing.
The council cited Section 205(1) of the PIA, which provides for unrestricted free-market conditions to determine wholesale and retail prices of petroleum products.
It also referenced a recent statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which said it does not fix pump prices or issue administrative price templates except where statutory conditions for intervention are met.
“No such market failure has been declared,” the regulator said, according to the council.
The APC-PCC therefore asked Atiku to clarify whether refiners receiving the proposed subsidy would be required to sell petrol at a government-prescribed price.
“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act,” the statement said.
“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations.”
The council argued that without an enforceable mechanism linking the subsidy to pump prices, refiners could receive public support while consumers continued to pay market-determined prices.
How much would the subsidy cost?
The APC-PCC also challenged Atiku to disclose the projected cost of the proposed intervention and its source of funding.
According to the council, Atiku’s earlier suggestion that the policy could involve preferentially priced crude for domestic refineries would reduce the value accruing to the Federation and potentially affect revenues available to the federal, state and local governments.
The statement estimated that, depending on the discount applied, the volume covered and whether the intervention applied to an entire barrel or only to petrol sold domestically, the annual cost could run into tens of trillions of naira.
The council said Atiku should publish the assumptions behind the proposal and provide details on:
- the proposed subsidy rate;
- the annual spending ceiling;
- the volume of crude or petrol covered;
- the source of funding;
- the mechanism for ensuring lower pump prices;
- safeguards against diversion, smuggling and fraudulent claims; and
- whether amendments to the PIA would be required.
It added that an appropriation by the National Assembly would authorise expenditure but would not, by itself, resolve all regulatory questions arising under the PIA.
“If Atiku intends to amend the law, he should say so plainly,” the statement said.
The campaign council also challenged Atiku to reconcile his latest proposal with his previous public opposition to petrol subsidies.
It recalled that Atiku, speaking at the Lagos Business School in November 2022, described the petrol subsidy system as fraudulent and pledged to complete its removal.
The council also cited an August 25, 2026 post attributed to Atiku on X in which he stated: “I will restore it!”
The APC-PCC said Atiku should explain why he now favours restoring subsidy in a different form and how the proposed arrangement would avoid the problems associated with the previous regime, including alleged diversion, smuggling and fiscal losses.
The council further pointed to the history of downstream deregulation, noting that diesel moved to market pricing in June 2003 and aviation fuel was also deregulated under the Obasanjo-Atiku administration, while kerosene was deregulated in 2016.
It said petrol was the last major petroleum product to remain under the old subsidy framework, with the PIA providing for the transition away from the regime.
“The PIA reform process began in 2000, during the first term of the administration in which Atiku served as Vice President,” the statement said, arguing that his current proposal should therefore be explained in the context of the legal and regulatory framework developed over the subsequent years.
The APC-PCC contrasted Atiku’s proposal with the Tinubu administration’s focus on compressed natural gas (CNG) and electric mass transit as alternatives for reducing transportation costs.
According to the council, more than 120,000 vehicles have been converted to CNG, with additional private conversions taking place nationwide.
It said commuters in seven states and the Federal Capital Territory were already paying between 31 and 83 per cent less on routes served by CNG and electric buses.
In Borno State, it said, fares on some government-supported routes range from ₦50 to ₦100, compared with commercial fares of between ₦300 and ₦600.
The council also cited the Suleja-Abuja route in Niger State, where it said passengers pay ₦550 rather than approximately ₦800.
In Kaduna State, the statement said, free CNG buses carried more than 1.4 million passengers in five months in 2025, resulting in an estimated ₦1.39 billion in fare savings.
It added that alternative-energy transport had reduced fares by up to 50 per cent in Adamawa State, while Abia State had deployed 40 electric buses and 20 charging stations.
President Tinubu, the council said, had also reiterated an agreement reached with the 36 state governors on August 27, under which more Nigerians were expected to begin seeing reductions in transportation costs from October 1.
The APC-PCC also pointed to developments in domestic refining as evidence of increased investment following downstream deregulation.
It cited the Dangote Petroleum Refinery’s reported attainment of its 650,000-barrel-per-day nameplate capacity and reports that the facility reached 700,000 barrels per day during performance tests.
The council also noted the company’s reported plans to raise ₦2.1 trillion through an initial public offering to support expansion.
While acknowledging the pressure higher petrol prices place on Nigerian households, the APC-PCC said the government would continue implementing measures to cushion consumers.
It said petrol had sold for about ₦830 per litre before the recent Middle East crisis pushed crude oil prices above $100 per barrel, adding that any de-escalation of the conflict could lower crude prices and, in turn, reduce petrol and diesel prices globally.
The council said the NMDPRA was working with the Federal Competition and Consumer Protection Commission on alleged price-gouging and with the Nigeria Customs Service to tackle the diversion of petroleum products across Nigeria’s borders.
The APC-PCC said any intervention in the downstream petroleum sector should be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.
It challenged Atiku to publish a detailed policy document alongside independent legal and fiscal assessments of his proposed production subsidy.
“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” the statement said.
The council concluded by urging Atiku to study the PIA and accused him of being out of step with current developments in the oil and gas sector.
It also invoked a criticism attributed to former President Olusegun Obasanjo in his memoir, My Watch, describing Atiku’s proposal as reflecting what Obasanjo called his “propensity for poor judgment.”
The statement was signed by Dele Alake, spokesman of the APC Presidential Campaign Council, on September 20, 2026.
