The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational basis of his proposal to subsidise locally refined petrol.
Atiku had reiterated his proposed “production subsidy” for locally refined petrol, saying the measure would reduce pump prices. He also called on President Bola Tinubu to reduce the cost of petrol and diesel.
But in a statement issued on Sunday, APC-PCC spokesman, Dele Alake, said the proposal raised questions that Atiku must answer.
The council cited Section 205(1) of the Petroleum Industry Act (PIA) 2021, which it said provides that unrestricted free-market conditions should determine wholesale and retail prices of petroleum products.
The APC-PCC also referenced the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which it said had explained that it neither fixes pump prices nor issues administrative price templates except where statutory conditions for intervention are met.
“At the moment, ‘No such market failure has been declared,’ NMDPRA said,” the council quoted the regulator as stating.
The APC-PCC therefore asked Atiku to clarify whether refiners benefiting from his proposed subsidy would be required to sell petrol at a government-prescribed price.
“Atiku should therefore explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price,” the statement said.
The council said if Atiku’s answer was yes, he should identify the legal framework that would allow government to impose such a condition and explain how it would operate within the PIA.
“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,” it said.
It also questioned how the proposed intervention would guarantee cheaper petrol if refiners were not compelled to sell at a prescribed price.
“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations,” the APC-PCC said.
“Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices,” it added.
The council further demanded details of the financial implications of the proposal and how the subsidy would be funded.
“Atiku must also disclose the cost of his proposal and how he would fund it,” the statement said.
According to the APC-PCC, Atiku’s earlier explanation suggested that the intervention could involve supplying domestic refineries with crude oil at preferential prices.
The council argued that any discount on crude would reduce the value accruing to the Federation and potentially affect revenues available to the federal, state and local governments.
It claimed that, depending on the subsidy rate, volume covered and structure of the intervention, the proposal could cost between N17 trillion and N21 trillion annually.
The APC-PCC, however, said Atiku needed to provide the assumptions behind such figures and disclose the precise structure of his proposal.
“These assumptions must be clearly defined. Nigerians deserve to know,” the statement said.
The council listed the subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, funding source, mechanism for guaranteeing lower pump prices and safeguards against diversion, smuggling and fraudulent claims among the issues requiring clarification.
It also asked Atiku to state whether amendments to the PIA would be necessary.
“An appropriation by the National Assembly may authorise expenditure, but it would not by itself resolve every regulatory question arising under the Petroleum Industry Act,” the APC-PCC said.
“If Atiku intends to amend the law, he should say so plainly,” it added.
The council also questioned the former vice president’s current position in light of his previous advocacy for the removal of petrol subsidy.
It recalled that Atiku, while speaking at the Lagos Business School in November 2022, described the petrol subsidy system as fraudulent and pledged to complete its removal.
The APC-PCC also cited Atiku’s statement of August 25, 2026, in which he said, “I will restore it!”
It challenged him to explain the change in position and how his proposed subsidy would avoid the problems associated with the former system.
“He must explain why he now advocates restoring subsidy in another form and how his proposed arrangement would avoid the abuse, scarcity, smuggling and fiscal losses associated with the old system,” the statement said.
The APC-PCC further noted that downstream petroleum deregulation had taken place in stages, including the deregulation of diesel in June 2003 and aviation fuel under the administration in which Atiku served as vice president.
It said the Buhari administration deregulated kerosene in 2016, while petrol remained under the subsidy regime until the Tinubu administration removed it in 2023.
The council said Nigeria had spent years developing the PIA and urged Atiku to explain how his proposal would fit within the legislation.
“Nigeria spent about two decades developing the PIA,” the statement said.
“The reform process began in 2000, during the first term of the administration in which Atiku served as Vice President. He should therefore explain how his new proposal aligns with the legal and regulatory framework that emerged from that process,” it added.
The APC-PCC contrasted Atiku’s proposal with the Tinubu administration’s efforts to reduce transportation costs through compressed natural gas (CNG) and electric mass transit.
