Presidency Rejects Atiku's Fuel Subsidy Restoration Proposal

The Presidency has responded to former Vice-President Atiku Abubakar's pledge to restore fuel subsidies, warning that such a reversal would undermine ongoing reforms in the petroleum sector, create legal and fiscal complications, and deter investment in local refining. Presidential spokespersons characterized Atiku's proposal as retrogressive and fiscally unsustainable, driven by a "desperation to win the presidency." President Bola Ahmed Tinubu, during a meeting at the State House, criticized Atiku's stance as indicative of "his high level of ignorance in governance and economy." Since the end of fuel subsidies on May 29, 2023, the policy shift has reportedly freed up N15.8 trillion for the federation, with N5.4 trillion allocated to the federal government and N10.4 trillion to states and local governments.

Atiku, now the presidential candidate of the Peoples Democratic Party (PDP), had previously supported subsidy removal but has since proposed a controlled support mechanism linked to domestic refining. Experts like Prof. Uche Uwaleke and Prof. Ken Ife opposed blanket subsidies, emphasizing the need for productive economic measures rather than consumption subsidies.

Citizens expressed economic hardship, making Atiku's proposal appealing.