The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and practical basis of his proposed subsidy for locally refined petrol.
The council said Atiku’s proposal for a “production subsidy” to reduce petrol pump prices raised important questions about how the policy would operate under the Petroleum Industry Act (PIA) 2021.
In a statement signed by its spokesman, Dele Alake, the APC-PCC cited Section 205(1) of the PIA, which provides that unrestricted free market conditions shall determine wholesale and retail prices of petroleum products.
The council also referenced the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which it said had explained that it does not fix pump prices or issue 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 consequently asked Atiku to explain whether refineries receiving his proposed subsidy would be required to sell petrol at a 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.
It added that if the government would impose a prescribed price, Atiku should identify the legal framework for such an intervention and explain how it would operate consistently with the PIA.
“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations,” the council said.
“Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices,” it added.
The council also demanded details of the cost and funding of the proposal, particularly Atiku’s earlier suggestion that the intervention could involve preferentially priced crude for domestic refineries.
According to the APC-PCC, any discount on crude could reduce the value accruing to the Federation and consequently affect revenues available to the federal, state and local governments.
The council claimed that the proposed subsidy could cost between N17 trillion and N21 trillion annually, depending on the discount size, volume covered and whether the support would apply to the entire barrel or only petrol sold domestically.
“These assumptions must be clearly defined. Nigerians deserve to know,” the statement said, before listing the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered and source of funding among the details Atiku should disclose.
The council also demanded an explanation of “the mechanism guaranteeing lower pump prices” and safeguards against “diversion, smuggling and fraudulent claims.”
It further asked whether amendments to the PIA would be required to implement the proposal.
“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 what it described as a change in Atiku’s position on petrol subsidy and downstream deregulation.
It recalled that in November 2022, Atiku reportedly described the petrol subsidy system as fraudulent and pledged to complete its removal.
The APC-PCC also cited his August 25, 2026 statement on X, in which he said, “I will restore it!”
“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 council said.
The council further noted that downstream deregulation had been pursued over several administrations, arguing that Nigeria had spent years developing the Petroleum Industry Act and should not return to an arrangement it said had previously generated significant fiscal and regulatory challenges.
Defending the Tinubu administration’s approach, the APC-PCC said the government was expanding alternative-energy transportation through compressed natural gas (CNG) and electric mass transit.
It said more than 120,000 vehicles had been converted to CNG, while commuters in seven states and the Federal Capital Territory were already paying lower fares on routes served by CNG and electric buses.
The council quoted President Tinubu as saying, “From October 1, more Nigerians should begin to see measurable reductions in transportation costs.”
It also cited developments in the domestic refining sector, particularly the Dangote Petroleum Refinery, which it said had reached its nameplate capacity of 650,000 barrels per day and reportedly achieved 700,000 barrels per day during performance tests.
The council said the refinery’s proposed initial public offering, targeting about N2.1 trillion for expansion, further demonstrated increased investment in domestic refining.
The APC-PCC acknowledged the pressure higher petrol prices have placed on Nigerian families, saying the Tinubu administration would continue implementing measures to support citizens.
It said the government was working with the Federal Competition and Consumer Protection Commission on price-gouging and with the Nigeria Customs Service against the diversion of petroleum products across Nigeria’s borders.
The council maintained that “every proposed intervention in the downstream sector must be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.”
It urged Atiku to provide Nigerians with a detailed policy document and an independent legal and fiscal analysis of his proposal.
“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” the APC-PCC said.