Presidency Rejects Atiku's Fuel Subsidy Proposal

The Presidency has dismissed the fuel subsidy restoration proposal put forward by Atiku Abubakar, the African Democratic Congress (ADC) 2027 presidential candidate. Sunday Dare, special adviser to the President on media and public communication, stated that the proposal treats symptoms rather than the underlying economic issues.

Atiku's plan involves selling crude oil to domestic refineries at preferential prices to reduce fuel costs for Nigerians. Dare warned that this approach would create a gap in the Federation Account, reducing revenue for federal, state, and local governments, which is crucial for funding schools, hospitals, and security.

He described the proposal as a "fiscal hole dressed up as policy." Additionally, Dare expressed concerns about potential structural damage to the downstream sector, as preferential allocations could disadvantage smaller refiners and contradict the deregulatory framework established under the Petroleum Act. He cautioned that significant price gaps between Nigerian pump prices and those in neighboring countries could lead to increased fuel smuggling, undermining any monitoring efforts.