Atiku Abubakar Proposes Local Refining Subsidy Plan

Atiku Abubakar, the former Vice-President and presidential candidate of the African Democratic Congress, unveiled a targeted production subsidy plan for petroleum products refined in Nigeria during a news conference in Abuja on September 18. This proposal aims to reduce pump prices, stimulate domestic refining, and create jobs.

Atiku stated that the subsidy would apply only to locally refined petroleum products sold to Nigerians, explicitly excluding imported products. He emphasized the need for government support to lower domestic production costs without reverting to subsidizing imported petrol.

The plan would require a fixed spending limit, approval from the National Assembly, and independent audits for transparency. Atiku pledged that if elected, he would implement this subsidy from May 29, 2027.

This proposal follows the Federal Government's removal of petrol subsidies after President Bola Tinubu took office in May 2023, which led to increased pump prices and higher transportation costs. The Tinubu administration has defended this reform as necessary for strengthening government finances and attracting private refining investments.