The All Progressives Congress Presidential Campaign Council has challenged former Vice-President Atiku Abubakar to explain the legal and financial basis of his proposed production subsidy for locally refined petrol.
The council said the proposal, which Atiku reiterated at a press conference in Abuja on Friday, raised questions about its compatibility with the Petroleum Industry Act, its cost to the government and how it would guarantee lower pump prices.
In a statement issued on Sunday by its spokesman, Dele Alake, the APC-PCC cited Section 205(1) of the PIA 2021, which provides for unrestricted free-market conditions in determining wholesale and retail prices of petroleum products.
The council also referred to a recent position by the Nigerian Midstream and Downstream Petroleum Regulatory Authority that it does not ordinarily fix pump prices or issue administrative price templates except where statutory conditions for intervention are met.
Alake therefore asked Atiku to explain whether refineries receiving the proposed subsidy would be compelled 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,” he said.
He added that Atiku should explain how such an arrangement would operate within the PIA.
“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations.
“Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices,” Alake said.
The APC-PCC also demanded details of the proposed subsidy rate, annual spending ceiling, volume of crude oil or petrol to be covered and the source of funding.
The council said the intervention could cost between N17tn and N21tn annually, depending on the subsidy rate, volume covered and other assumptions.
It further questioned whether preferential pricing of crude oil for domestic refineries would reduce revenues accruing to the Federation Account and, consequently, funds available to the federal, state and local governments.
The council also sought safeguards against diversion, smuggling and fraudulent claims.
It asked Atiku to clarify whether amendments to the PIA would be required to implement the proposal.
The APC-PCC also challenged Atiku to reconcile his latest position with his previous stance on downstream deregulation.
Alake recalled that Atiku described the petrol subsidy regime as fraudulent in November 2022 and pledged to complete its removal.
He also referred to Atiku’s August 25, 2026 statement in which the former vice-president said, “I will restore it!”
The council said Atiku should explain how his proposed arrangement would avoid the problems associated with the former subsidy regime, including smuggling, fraudulent claims and fiscal losses.
Meanwhile, the APC-PCC said the President Bola Tinubu administration was pursuing alternative measures aimed at reducing transportation costs through compressed natural gas and electric mass transit.
It said more than 120,000 vehicles had been converted to CNG under the government’s programme.
The council acknowledged the pressure caused by high petrol prices but maintained that any intervention in the downstream sector should be lawful, transparent and properly costed.
It urged Atiku to publish a detailed policy document alongside independent legal and fiscal analyses of the proposal.
The council said that until such details were provided, the production-subsidy proposal lacked a clearly identified legal and operational framework.
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
