₦airaland Forum

The Presidency has criticised former Vice President Atiku Abubakar over his proposal to restore petrol subsidy if elected president, describing the policy as “retrogressive” and fiscally unsustainable.

It said Atiku’s position represented a departure from his previous stance on petrol subsidy and urged him to explain how the proposed policy would be funded.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated this in a release on Thursday titled, “Restoring petrol subsidies: Atiku’s volte-face and desperation for power.”

Onanuga said Atiku, who previously advocated the removal of fuel subsidy, had now “opportunistically recanted” his position ahead of the 2027 general elections.

Onanuga described the subsidy regime as “much-abused, wasteful, pillaged, corruption-ridden,” which he said had been made illegal from the end of June 2023, owing to the Petroleum Industry Act.

He noted that while it respects Abubakar’s constitutional right to propose alternative policies, the citizens deserved to understand the effects of the policy’s reversal.

“We respect Alhaji Atiku Abubakar’s constitutional right to propose alternative policies, to seek the support of Nigerians and recant a major policy prescription.

“However, Nigerians also deserve to understand what the proposed restoration of subsidy would actually mean, how it would be funded, and whether it is compatible with the legal and structural changes that have taken place in the petroleum sector,” he said.

The presidential aide cautioned that before the ex-VP’s idea deceives the masses, it’s high time the presidency subjects the “promise to a serious examination, especially in the context of Nigeria’s present economic and petroleum realities.”

“Alhaji Atiku Abubakar, former Vice President and perennial candidate for the presidency of Nigeria, has finally revealed his economic plans to Nigerians, should he be elected as President by January next year.

“Against expectations that he would announce a more creative and ingenious alternative to the programme being executed by the Tinubu administration, Atiku Abubakar behaved like a man from an archaic past who least comprehends the present economic dynamics and suggested that he would restore the much-abused, wasteful, pillaged, corruption-ridden fuel subsidy regime, which the Petroleum Industry Act made illegal from the end of June, 2023.

“Even though he used to believe that the subsidy regime must be eliminated, a point he canvassed in the run-up to his defeat in the 2023 election, he has now opportunistically recanted the major plank of his economic doctrine and turned a renegade.

“It is not difficult to explain why Atiku has latched onto the abandoned subsidy regime, five months to the election. Desperate for power, he needed to make a promise that he knew, if he were candid with our people, does not make fiscal sense, is retrogressive, and is against the genuine interest of the people.

“But before his suggestion hoodwinks the people, we must quickly subject the promise to a serious examination, especially in the context of Nigeria’s present economic and petroleum realities,” the statement partly read.

Onanuga clarified that the subsidy was a discount offered by the Nigerian National Petroleum Limited to the government.

However, the national oil company, according to Onanuga, is still owed trillions of Naira by the FG.

He added further that, while the subsidy removal was scheduled to be effective by the end of June 2023, the President only “accelerated it by weeks to stop further bleeding before the due date.”

“First, we must clear some ambiguities about the so-called subsidy. It is not some money sitting in the treasury to be disbursed to offer cheap fuel to Nigerians. It is the massive discount the NNPC offered the Nigerian government: selling fuel it bought at N100 at N50 at the pump, leading to under-recovery of costs and massive losses.

“Somewhere in the NNPC books are still trillions of Naira in subsidy costs that the Nigerian government has not paid. Contrary to Atiku’s claim in his interview, no N30 trillion subsidy windfall or savings exists anywhere except in his imagination.

“The petrol subsidy regime that Nigerians knew before May 2023 was dismantled as part of the country’s petroleum-sector reforms. The Petroleum Industry Act established a new framework for the downstream petroleum market.

“It removed the subsidy, as was previously done for diesel, kerosene and aviation fuel, ending a system that had placed a substantial and often unpredictable burden on public finances. The PIA scheduled the subsidy removal by the end of June 2023. President Tinubu only accelerated it by weeks to stop further bleeding before the due date,” read the statement.

He noted that Abubakar’s proposal signals a “reversal of current local production, and it will spell bankruptcy for smaller local refineries like Aradel’s, causing attendant job losses and a loss of foreign exchange.”

He added that the current policy has restored the nation’s pride, as opposed to the period when Abubakar and former President Olusegun Obasanjo were in power.

The statement continued, “Restoring the old arrangement, therefore, cannot simply be presented as a matter of announcing that government will once again pay part of the cost of petrol. It would require a clear legal, fiscal and administrative framework, including identifying the source of the funds and determining how such a policy would be implemented under the present petroleum-market structure.

“More importantly, Nigeria’s petroleum landscape has changed significantly since May 2023. For many years, the country relied heavily on imported petrol, with the government bearing the consequences of the gap between the regulated pump price and the cost of supplying the product.

“Today, the emergence of substantial domestic refining capacity has fundamentally altered that equation. The Dangote Refinery has become a major source of locally refined petrol. Indeed, the Dangote Refinery would not have kickstarted production for local consumption were the subsidy regime operative. This is an important point that Atiku deceptively ignored.

“Atiku’s proposal portends a reversal of current local production, and it will spell bankruptcy for smaller local refineries like Aradel’s, causing attendant job losses and a loss of foreign exchange. Because the sector is now market-driven, Nigeria now exports refined products to Europe, Asia, and the United States, restoring national pride.

“This development is a sharp contrast to when Obasanjo and Atiku were in power: Nigeria’s largest import, costing about $10 billion, was refined products!. President Tinubu has flipped that to Nigeria’s advantage.

“The N15 trillion that would have been borrowed and spent on selling discounted petrol has now significantly gone into the coffers of the three tiers of government. Now all states are fiscally stable and can pay salaries regularly and embark on infrastructure projects. In July, the three tiers shared about N3 trillion, a record, from the federation account. That is a major achievement, since the abolition of petrol price discount and distortions in the foreign exchange regime.”

Onanuga queried who would be responsible for payments if the subsidy policy was reversed.

“In practical terms, therefore, Nigerians should ask a straightforward question: If the subsidy is restored, who pays for it? What will the new pump price be? N200 or N500? If petrol is sold below its economic cost, which is about N1,200 to N1,300, someone must absorb the difference.

“Ultimately, that cost falls on the public finances—through reduced funds for infrastructure and social services, reduced allocation to states and 774 local councils, increased borrowing, higher public debt, or some combination of these,” he added.

Racoon:
Meanwhile the unimaginable effects of the dubious Tinubu's so called "subsidy is gone" corruption is a staggering economic burden for this nation. Bunch of criminals

AMINDA:
All through his 8-year tenure, Buhari paid a total subsidy of about 8 trillion naira. In the first 6 months after announcing "subsidy is gone", Tinubu paid a subsidy of about 6 trillion naira and termed it "energy security". He has also outborrowed Buhari’s 8-year tenure in just 3 years and yet, Buhari paid subsidies and has more tangible infrastructural projects to show. Who is fooling who? Splurging money on state governors in exchange for their defection and endorsement can hardly be regarded as a dividend of subsidy removal. Atiku will bring fuel subsidy back!

Parachoko:
It's going to be so dumb for any Government to start paying subsidy on Fuel again

Parachoko:
It's going to be so dumb for any Government to start paying subsidy on Fuel again

Streetinvestor2:
U prefer they use it for rigging elections in states and using it to pay data boys 30k to defend rubbish on social space. They should return it I no longer support it as it added no benefits to majority of Nigerians. They can return it to SE,SS and north we are ok

Parachoko:
We're Never going back to the Dark Days wben States like Abia couldn't pay Civil Servants and Pensioners.

Parachoko:
We're Never going back to the Dark Days wben States like Abia couldn't pay Civil Servants and Pensioners.

iwaeda:
A government that is still paying under recover, Let them account for all the payments by NNPC to import fuel. The hardship really unbearable. Anything to cushion the wicked act of subsidy removal without planning is welcome.

CharlesCNG:
This is what happens when political conclusions come before arithmetic.
You made four assertions
Let's rebut this point by point.

CLAIM 1: “Buhari paid only ₦8 trillion subsidy in eight years.”

Not quite. Published estimates put Buhari-era subsidy/under-recovery higher. 2022 plus the first half of 2023 alone consumed roughly ₦7–₦8 trillion.So the ₦8 trillion claim for Buhari's entire eight years is already suspect.

CLAIM 2: “Tinubu paid ₦6 trillion subsidy in his first six months.”

You mixing two adminisrations.

NNPC's 2023 figures included about ₦3.3 trillion incurred from January–May—before Tinubu became President.

Tinubu's August–December component was around ₦1.8 trillion.

Buhari incurred part of the bill; Tinubu inherited the ledger—but you mischievously want to hand Tinubu the entire receipt. 😂

CLAIM 3: “Tinubu has outborrowed Buhari in three years.”

WRONG AGAIN. Debt stock ≠ new borrowing.A huge part of the naira increase came from revaluing existing foreign debt after naira depreciation. Another major component was Buhari-era Ways & Means liabilities subsequently recognised/securitised as public debt.

Again , You being mischievous by renaming exchange-rate revaluation and inherited liabilities “Tinubu borrowing.”

CLAIM 4: “Tinubu is splurging subsidy savings on governors for defections.”

Arrant Nonsense . Where is the evidence?

FAAC allocations are constitutionally distributed to federal, state and local governments. Higher government revenues increased the distributable pool. States that could not pay salaries before subsidy removal are not only paying but are building infrastrctures.

Calling statutory allocations political bribes can only come from the figments of the imagination of an atikulated mind


Basically what you have done is mix Buhari's bills with Tinubu's, confuse debt stock with borrowing and turn FAAC allocations into defection payments without evidence—

then announce:“ATIKU WILL BRING SUBSIDY BACK!”

Before Atiku brings anything back, answer one question:

HOW MUCH WILL IT COST—AND WHO WILL PAY?
Atiku is not bringing subsidy back otherwise ask him to provide details of how.
Atiku is just confused and desperate and lying.

Parachoko:
It's going to be so dumb for any Government to start paying subsidy on Fuel again

CharlesCNG:
You are focusing only on the half-empty bottle aspect of fuel subsidy removal—often with deliberate distortions—while ignoring the half that is filling up.
Atiku's plan - of which he has not provided a single detail will be a total disster. indeed it will collapse the economy. I will provide you with more than twenty reasons but will start with just one:DANGOTE AND LOCAL OTHER LOCAL REFINERS.

Nigeria’s petrol market is no longer the old import-dependent system: with Dangote and other local refiners now producing, Atiku’s detail-free “restore subsidy” talk raises one simple question: will government force local refiners to sell below cost, or will taxpayers pay them the difference?

Until he answers that, “I will restore subsidy” is not a policy; it is a slogan without an invoice.

BEFORE ATIKU “BRINGS SUBSIDY BACK,” PLEASE GET ATIKU AND HIS SUPPOERTERS , AT LEAST THE OLD SUBSIDY ARITHMETIC RIGHT

AMINDA:
All through his 8-year tenure, Buhari paid a total subsidy of about 8 trillion naira. In the first 6 months after announcing "subsidy is gone", Tinubu paid a subsidy of about 6 trillion naira and termed it "energy security". He has also outborrowed Buhari’s 8-year tenure in just 3 years and yet, Buhari paid subsidies and has more tangible infrastructural projects to show. Who is fooling who? Splurging money on state governors in exchange for their defection and endorsement can hardly be regarded as a dividend of subsidy removal. Atiku will bring fuel subsidy back!

Streetinvestor2:
They whr not paying them because the governors that came before oti whr criminals who are now in apc and not because thr was no money to pay them.
Oti has not borrowed like any of them and is working. The saved money from subsidy has been looted by baron and apc thieves.
Whr is the mass cng vehicles after 3 yrs.
He has borrowed more than all government after removing subsidy. Even the rubbish called NELFUND he is now looking for investors unclaimed dividend to fund it and loot the remaining

iwaeda:
What is the value of N10k in 2015 compared to N100k now. Nigeria has been secretly paying subsidy. How many states are pay minimum wages?