Skip to main content

The Traffic NG

  • info@thetraffic.ng
  • 7 Nasir El Rufai Crescent, Guzape
THE TRAFFIC NG LOGO
THE TRAFFIC NG LOGO
ADVERTISE WITH US
APC-PCC

The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to provide the legal, fiscal and operational framework for his proposed production subsidy for locally refined petrol.

The challenge followed Atiku’s renewed call for lower petrol and diesel prices and his proposal for an intervention targeted at domestic refining, which he has said would reduce the burden of rising energy and transportation costs on Nigerians.

The APC-PCC said the proposal raises questions about how any subsidy would operate under the Petroleum Industry Act (PIA) 2021, how much it would cost government and what mechanism would ensure that any benefit given to refiners is passed on to consumers through lower pump prices.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a statement on Saturday, said Section 205(1) of the PIA provides for wholesale and retail prices of petroleum products to be determined under unrestricted free-market conditions.

The regulator said it does not ordinarily fix petrol pump prices or issue administrative pricing templates, except where the statutory conditions for intervention are met. It added that no such market failure had been declared.

READ ALSO: Shettima: Tinubu’s Intervention Made 2026 Hajj Seamless

Against that background, the APC-PCC asked Atiku to clarify whether refiners benefiting from his proposed production subsidy would be required to sell petrol at a government-prescribed price.

If such a condition would apply, the council said Atiku should identify the legal mechanism through which the government would impose and enforce the price requirement under the existing petroleum legislation.

It also asked him to explain how the subsidy would deliver cheaper petrol if refiners were not required to pass the benefit to consumers.

The council further demanded details of the financial implications of the proposal, including the proposed subsidy rate, annual spending limit, volume of crude or petrol to be covered and the source of funding.

One possible model discussed around Atiku’s proposal has involved preferentially priced crude for domestic refineries. The APC-PCC argued that any discount on crude supplied for such a programme would have fiscal implications because it could reduce the value accruing to government.

However, the actual cost of the proposed intervention would depend on details that Atiku has yet to publicly specify, including the size of any crude discount, the volume covered, eligibility criteria and whether the support would apply to all domestic production or only petrol sold within Nigeria.

The council therefore asked for safeguards against diversion, smuggling and fraudulent claims, as well as clarification on whether implementation would require amendments to the PIA.

Atiku has repeatedly defended the idea of restoring a targeted petrol subsidy. On August 25, he said his position had not changed and that he would restore subsidy if elected, arguing that government should use Nigeria’s resources to cushion citizens from rising living costs.

He has also distinguished his proposal from the former import-based subsidy system, saying the intervention would support Nigerian production and reduce energy costs rather than restore what he described as the previous import arrangement.

The APC-PCC, however, said Atiku should reconcile the proposal with his previous position on downstream deregulation and explain how a new subsidy arrangement would avoid the problems associated with earlier subsidy regimes.

The debate comes as the Tinubu administration continues to pursue alternatives aimed at reducing transportation costs through compressed natural gas and electric vehicles.

President Bola Tinubu said on September 19 that more than 120,000 vehicles had already been converted to CNG and that the Federal Government, states and other stakeholders were working to expand cheaper transport options ahead of October 1.

According to the President, CNG-powered and electric public transport services in Borno are already carrying passengers for between N50 and N100 on routes where commercial operators charge between N300 and N600. He said the government was working with the 36 states to expand similar interventions.

The APC-PCC said the government’s approach was focused on reducing the cost of transportation through alternative energy sources rather than returning to the previous subsidy structure.

Atiku’s proposal has therefore reopened a broader policy debate over whether government should directly subsidise petrol, subsidise domestic production or rely on market pricing while supporting consumers through alternative transport and energy programmes.

The central questions remain the legal basis for intervention, the cost to public finances and the mechanism for ensuring that any subsidy actually reaches consumers.

The APC-PCC said Atiku should publish a detailed policy document setting out those elements and provide Nigerians with sufficient information to assess how his proposed subsidy would operate within the country’s existing petroleum and fiscal framework.

Until those details are provided, the council said significant questions remain over how the proposed production subsidy would be implemented, funded and translated into lower petrol prices for consumers.

The Traffic NG
APC-PCC
Amarachi Ihesiulo
The Traffic NG

Categories

Search
Recent Post
Tinubu
Tinubu Extends Europe Stay, Returns Weekend
  • September 21, 2026
  • 3 min read
Diphtheria
Diphtheria: Why Preventable Diseases Keep Killing Nigerians
  • September 21, 2026
  • 10 min read
aviation
Nigeria’s Aviation Boom Faces a Reality Check
  • September 21, 2026
  • 10 min read
Featured Videos
All Tags
ADC AFCON Alhaji Atiku Abubakar Aliko Dangote Anthony Joshua APC Atiku Abubakar aviation CBN Court Customs Dangote EFCC FIFA First Lady First Lady Senator Oluremi Tinubu FRSC Gov. Hope Uzodimma Governor Hope Uzodimma INEC JAMB Lagos Lionel Messi NDLEA Nigeria NSC Nyesom Wike NYSC Oil PDP Peter Obi Police President Bola Ahmed Tinubu President Bola Tinubu Senate Senator Oluremi Tinubu sports Sunday Dare Super Eagles Taiwo Oyedele Tax Troops United Nigeria Airlines Vice President Kashim Shettima Victor Osimhen

Related Posts

APC-PCC
Politics
APC Challenges Obi Over Anambra Debt, Salary Claims
Atiku, Mambilla
Politics
ONE MAN, NINE CURRICULUM OF FRAUD: THE ATIKU DOSSIER
Festus Keyamo
Politics
Keyamo Says APC Bye-Election Wins Significant Ahead of 2027
Atiku, Mambilla
Politics
Mambilla: APC Campaign Council Questions Atiku’s 2027 Presidential Bid

© 2025. All rights reserved  - Developed by ICS.