Former Vice President Atiku Abubakar has argued that concerns raised by the Dangote Refinery over government-imposed petrol prices have strengthened the case for his proposed production-based fuel subsidy.
Atiku, through his Senior Special Assistant on Public Communication, Phrank Shaibu, said on Friday that the refinery’s position reflected a genuine business concern that should not be confused with opposition to measures aimed at making petrol more affordable for Nigerians.
The former vice president accused the Bola Tinubu administration of misrepresenting his proposal in an attempt to discredit it.
“Dangote raised a legitimate business concern. The Presidency turned it into a campaign of fear,” Atiku said.
He explained that his proposal was never intended to compel privately owned refineries to sell petrol below their production costs.
Rather, he said the policy would reduce the cost of crude supplied to qualifying domestic refineries through a transparent system that would be independently monitored.
Atiku described the approach as a shift from the traditional import-based subsidy model to one that supports domestic production.
“We are restoring subsidy through a production subsidy model, not an import subsidy model,” he said.
According to him, an import subsidy would effectively support petrol refined abroad, while a production-based model would target crude processed within Nigeria, allowing local refineries to produce fuel at a more competitive cost.
“The subsidy follows the barrel refined in Nigeria,” he added.
How Atiku’s Proposed Model Would Work
Atiku said the proposed arrangement would be subject to strict controls to prevent abuse and ensure that government support translates into increased domestic fuel production.
He listed capped support for crude supplied to eligible refineries, independent verification, electronic monitoring of crude intake and refined petroleum output, domestic supply obligations and regular audits as key components of the proposed system.
The former vice president also rejected the suggestion that keeping petrol affordable for consumers would necessarily undermine the profitability of private refineries.
“We reject the false choice between a profitable refinery and an affordable pump price. A competent government should be able to protect both the producer and the consumer,” he said.
Atiku argued that the government should not set an artificially low pump price and then expect private refinery operators to bear the resulting losses.
He said any additional intervention beyond the savings achieved through cheaper crude feedstock should be transparently funded by the government.
“If the government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then the government must pay for that relief. It must be budgeted. It must be capped. It must be audited,” he said.
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Atiku maintained that the policy would go beyond reducing petrol prices, arguing that it could also encourage investment in Nigeria’s refining sector, expand local production and create employment opportunities.
“We are proposing targeted support for crude refined here in Nigeria so that domestic refineries can produce more competitively, expand capacity, create jobs and sell fuel at a price Nigerians can better afford,” he said.
He further urged the Presidency to address the substance of his proposal rather than what he described as a distorted version of the policy.
According to Atiku, the government should engage with the practical details of the production subsidy model instead of attributing positions to him that he said were not part of his proposal.