Atiku: FG’s petrol subsidy policy favours rich oil firms over poor Nigerians

Former Vice-President Atiku Abubakar has accused the Federal Government of favouring petroleum investors with fiscal incentives while leaving Nigerians to bear the burden of rising petrol prices and the worsening cost of living.

Atiku, the African Democratic Congress (ADC) presidential candidate for the 2027 election, made the allegation in a statement issued on Sunday by Phrank Shaibu, his Senior Special Assistant on Public Communication.

He criticised President Bola Tinubu’s decision to remove the petrol subsidy, arguing that the government continues to provide tax credits, concessions and other incentives to operators in the petroleum sector.

According to Atiku, the government’s position appears to be that public intervention is acceptable when it benefits oil investors but unacceptable when it provides relief to ordinary Nigerians.

“Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes,” he said.

Atiku cited the deep offshore oil and gas projects incentives framework, which allows eligible petroleum projects to receive production tax credits of between $3 and $4.50 per barrel, with additional incentives capable of increasing the total benefit to as much as $11.50 per barrel under certain conditions.

He questioned why government intervention was considered appropriate for investors but not for Nigerians struggling with the effects of petrol price increases.

Atiku also challenged the claim that petrol subsidy had been completely removed, citing figures from the audited accounts of the Nigerian National Petroleum Company Limited.

He said NNPC recorded about N4.84 trillion in energy-security expenses and related shortfalls in 2023, rising to approximately N7.13 trillion in 2024.

According to him, NNPC attributed part of the expenses to the difference between the exchange rate used to determine the regulated PMS ex-coastal price and the prevailing exchange rate when import obligations were settled.

“If Nigerians were paying market prices because ‘subsidy is gone’, why was the Federation still carrying trillions of naira in under-recovery and energy-security costs?” Atiku asked.

He argued that changing the terminology from subsidy to under-recovery, shortfall or energy security did not change the fact that public funds were being used to bridge the gap between the economic cost of petrol and its selling price.
Atiku: I’m not proposing return to old subsidy regime

Atiku clarified that his proposed economic recovery plan would not restore the former subsidy system, which he described as open-ended and opaque.

Instead, he said he would introduce a targeted, capped and transparently budgeted intervention that would be independently audited and linked to increased domestic production.

He added that the plan would be accompanied by measures to expand refining capacity, promote competition and improve household purchasing power.

“You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform,” Atiku said.

The former vice-president also called for greater transparency regarding petroleum-sector tax credits, remissions and other incentives.

He demanded disclosure of the beneficiaries, the amount of revenue forgone by the government and the investments delivered in return.

Atiku further argued that Nigerian investors should have equal and transparent access to comparable incentives.

He said the success of economic reforms should ultimately be measured by improvements in citizens’ living standards rather than by the level of hardship they endure.

Atiku had last week said he would restore petrol subsidy if elected president in 2027.

Tinubu subsequently criticised the proposal, describing Atiku as “ignorant of governance and the economy.”