Atiku Abubakar Proposes Production Subsidy for Fuel Costs

Former Vice President Atiku Abubakar defended his proposed production subsidy model aimed at supporting Nigerian refineries and reducing domestic fuel costs. Speaking through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku stated that the model is designed to make fuel more affordable without forcing refiners to sell at a loss.

He addressed concerns from Dangote Refinery regarding arbitrary price controls, advocating for a structured intervention instead of a blanket subsidy. Atiku explained that the production subsidy would support crude refined in Nigeria, contrasting it with import subsidies that utilize public funds for petrol refined abroad.

He outlined that the proposal would lower crude feedstock costs for qualifying domestic refineries through a transparent and capped mechanism. The plan includes strict safeguards such as independent verification, electronic tracking, and penalties for fraud.

Atiku emphasized that benefits would be tied to crude refined in Nigeria, ensuring that Nigerian refineries, workers, businesses, and consumers would gain from the initiative.