Atiku Abubakar Proposes Production-Based Petrol Subsidy for 2027

Former Vice President Atiku Abubakar has proposed a production-based petrol subsidy regime as part of his Atiku Economic Recovery Plan (AERP 2027). The plan suggests replacing the previous import-subsidy model with targeted support for qualifying Nigerian refineries through preferential access to domestic crude prices to lower energy costs. Abubakar argues the system would move subsidy from importation to production and utilize independent tracking to prevent fraud.

The Nigerian Presidency and Federal Capital Territory Minister Nyesom Wike rejected the proposal, labeling it retrogressive and opportunistic. Government officials stated that the Petroleum Industry Act made such subsidies illegal as of June 2023 and warned that restoring them would increase foreign exchange losses and undermine domestic refining capacity. Wike accused Abubakar of political inconsistency, questioning why he would return to a system he previously characterized as fraudulent.

Fiscal disputes have emerged alongside the policy debate. While Abubakar claimed a N30 trillion subsidy windfall exists, the Presidency denied this, though the Ministry of Finance estimated total savings at N15.8 trillion. The Allied Peoples Movement is currently demanding a detailed accounting of those savings, while Abubakar has challenged the government to explain billions in Energy Security Expenses recorded by NNPC Limited after the official end of the subsidy in May 2023.