The African Democratic Congress (ADC) has rejected the Presidency’s claim that former Vice President Atiku Abubakar’s proposal to reduce petrol prices to about N600 per litre would amount to a return to Nigeria’s old fuel subsidy regime.
The party said the proposal is a controlled production incentive for domestic refineries aimed at reducing petrol prices, boosting local refining capacity and cutting Nigeria’s dependence on imported petroleum products.
ADC National Publicity Secretary, Bolaji Abdullahi, made the clarification while responding to the Presidency’s criticism of the proposal and its projection that the policy could cost Nigeria N19.1 trillion.
According to Abdullahi, the Presidency failed to properly consider the structure of Atiku’s proposal and the potential economic benefits of making locally refined fuel cheaper for Nigerians.
“The Presidency has based its argument on a projected N19.1 trillion cost without properly considering how Atiku’s proposal is structured or the wider economic benefits of cheaper fuel produced locally,” he said.
“We are at a loss how the Presidency conjured up this phantom figure. But we do not agree with it.”
Abdullahi explained that the proposed incentive would operate within a defined fiscal limit, with monitoring mechanisms to track crude oil supplied to refineries through to the production of finished petroleum products.
He said the Presidency appeared to be criticising the former subsidy regime rather than Atiku’s proposed controlled and targeted incentive for domestic refining.
The ADC also questioned why the government supports incentives for oil producers while rejecting measures designed to reduce the impact of high fuel prices on Nigerians.
Abdullahi pointed to offshore oil production incentives of up to $11.50 per barrel, arguing that a similar, carefully controlled incentive for domestic refineries should not be dismissed.
“If Nigeria can provide a production-linked fiscal incentive of up to $11.50 per barrel to stimulate offshore oil production, why is a carefully controlled crude-input incentive for domestic refineries dismissed as economic madness when its objective is to make fuel cheaper for Nigerians and build domestic refining capacity?” he asked.
The party further argued that the economic cost of high petrol prices must be considered in evaluating the proposal, noting that expensive fuel has contributed to rising transportation fares, food prices, production costs and the broader cost-of-living crisis.
The ADC maintained that the proposed incentive would be capped, audited and fully traceable, while potentially reducing petroleum imports, conserving foreign exchange and strengthening Nigeria’s domestic refining industry.
