The Presidency has said Nigeria has fewer than 700,000 barrels of crude oil available daily for discretionary use after accounting for production costs, royalties and contractual obligations.
It made the disclosure while defending President Bola Tinubu’s 30-day petrol discount initiative by the Nigerian National Petroleum Company (NNPC) Retail against criticism by former Vice President Atiku Abubakar.
In a statement titled “Atiku’s Demagoguery in the Face of Tinubu’s Logical Policies,” the Presidency argued that Atiku’s proposed production subsidy failed to account for the realities of Nigeria’s crude oil production arrangements.
According to the statement, Nigeria produces approximately 1.8 million barrels of crude oil daily, but the Federal Government does not have unrestricted ownership of the entire output.
“Under complex Joint Ventures (JVs) and Production Sharing Contracts (PSCs) signed over decades, production costs, royalties, and profit-oil sharing ratios severely reduce the equity crude available to the state,” the statement said.
It added, “After accounting for these statutory and contractual obligations, Nigeria has fewer than 700,000 barrels per day of unencumbered ‘free crude’ to give away.”
The Presidency argued that supplying domestic refineries with crude oil at subsidised rates could affect government revenue and existing international supply agreements.
“Mega-refineries like the Dangote Petroleum Refinery require immense daily feedstock that far exceeds what the state can freely provide without breaching existing international supply contracts or bankrupting national revenues,” it stated.
It added that domestic refiners, including the Dangote refinery, must supplement local crude supplies with imports to meet their operational needs.
The Presidency also defended the petrol discount introduced by NNPC Retail, describing it as part of efforts to cushion the impact of fluctuations in the international oil market on Nigerians.
Atiku had criticised the initiative and the Federal Government’s proposed modulation framework during a press conference in Abuja.
However, the Presidency accused the former vice president of exploiting Nigerians’ economic difficulties for political gain.
“In close to 10 other countries, leaders are employing various means to provide relief for citizens. But in Nigeria, a President offers the same, and a misguided presidential candidate chooses to dance on the sufferings of Nigerians and exploit it for political gains,” the statement said.
The Presidency further maintained that its economic policies were aimed at addressing structural challenges while providing relief to citizens amid changing global energy conditions.