APC-PCC Challenges Atiku To Explain How Petrol Subsidy Will Cut Pump Prices

The All Progressives Congress Presidential Campaign Council (APC-PCC) has asked former Vice President Atiku Abubakar to provide more details on how his proposed production subsidy for locally refined petrol would translate into lower pump prices for consumers.

The council made the demand in a statement on Sunday by its spokesman, Dele Alake, following Atiku’s recent reiteration of his proposal to support locally refined petrol production and reduce the cost of petrol and diesel.

Atiku, the presidential candidate of the African Democratic Congress (ADC), has proposed a targeted production subsidy as part of his plans to reduce energy costs if elected in 2027. His proposed model is different from the former petrol import subsidy regime, which he has said should be replaced with a targeted and transparently funded intervention.

The APC-PCC, however, said the proposal required clarification on its legal basis, cost and mechanism for ensuring that the benefit reaches consumers.

Alake referred to Section 205(1) of the Petroleum Industry Act (PIA) 2021, which provides that wholesale and retail prices of petroleum products should be based on unrestricted free-market conditions.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also said on Saturday that it does not fix petrol pump prices or issue administrative pricing templates under the PIA. The regulator said government intervention in pricing is limited to exceptional circumstances where there is formal evidence of market failure.

Against that background, the APC-PCC asked Atiku to explain whether refineries receiving the proposed subsidy would be required to sell petrol at a specified price.

“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act,” Alake said, adding “If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations.”

The council also questioned the fiscal implications of the proposal, particularly if government support involved supplying crude oil to domestic refineries at preferential prices.
According to Alake, such an arrangement could affect the value of crude accruing to the Federation and, consequently, government revenues.

He estimated that the potential cost of the proposed intervention could range between N17 trillion and N21 trillion annually, depending on the size of any crude discount, the volume covered and whether the support applied to the entire crude barrel or only petrol produced for domestic consumption.

The APC-PCC said Atiku should therefore provide details of the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, source of funding and the mechanism through which lower pump prices would be achieved.

It also sought clarification on safeguards against diversion, smuggling and fraudulent claims, as well as whether amendments to the PIA would be necessary.

“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,” Alake pointed out.

The council further asked Atiku to explain how his current position relates to his earlier support for downstream deregulation.

Alake recalled that Atiku, while speaking at the Lagos Business School in November 2022, had described the petrol subsidy system as fraudulent and pledged to complete its removal. He also referred to an August 25, 2026 statement in which Atiku said he would restore subsidy under a different model.

Atiku’s campaign has previously explained the proposed approach as a targeted, capped and transparently budgeted production subsidy intended to support domestic refining and lower energy costs.

The APC-PCC also contrasted the proposal with the Tinubu administration’s emphasis on compressed natural gas (CNG) and electric mass transit as measures for reducing transportation costs.

Alake said more than 120,000 vehicles had been converted to CNG and that the Federal Government was working with state governments to expand alternative-energy transport infrastructure.

He quoted President Bola Tinubu as saying that, following his August 27 meeting with the 36 state governors, “From October 1, more Nigerians should begin to see measurable reductions in transportation costs.”

The council acknowledged the pressure that higher petrol prices have placed on households and businesses, but said it believed interventions in the downstream petroleum sector should be lawful, transparent and properly costed.

It consequently urged Atiku to publish a detailed policy document and provide an independent legal and fiscal analysis of his proposal.

The APC-PCC said this would allow Nigerians to better understand how the proposed subsidy would be funded, implemented and translated into lower prices for consumers.