Presidency Rejects Atiku Abubakar's Plan to Restore Fuel Subsidies

The Nigerian Presidency has rejected a proposal by Atiku Abubakar, presidential candidate for the African Democratic Congress, to restore fuel subsidies if elected in 2027. Abubakar's plan involves selling federation crude oil to local refineries at preferential, discounted prices to lower the cost of petrol and diesel at the pump. He reaffirmed his commitment to the policy, stating that Nigeria is rich enough to look after the welfare of its citizens.

Sunday Dare, Special Adviser to President Bola Tinubu on Media and Public Communication, condemned the plan as an economic safari and an arithmetic flaw. Dare argued that selling crude below market price would create an immediate fiscal hole in the Federation Account, slashing funding for security, hospitals, and schools. He further warned that the strategy would violate the Petroleum Industry Act, create artificial monopolies, and incentivize fuel smuggling into neighboring West African markets.

Parallel to the political debate, the Independent Petroleum Marketers Association of Nigeria argued that the most effective way to stabilize prices is the revival of the Port Harcourt, Warri, and Kaduna refineries. The association stated that restoring these refineries, along with pipelines and 21 depots, would create the competition necessary to reduce price volatility regardless of subsidy status. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that all three national refineries remained non-functional as of July.