ADC Rejects Presidency’s N19.1trn Claim, Defends Atiku’s N600 Petrol Proposal

The African Democratic Congress (ADC) has rejected the Presidency’s description of former Vice President Atiku Abubakar’s proposal to cut petrol prices to about N600 per litre as a return to Nigeria’s old fuel subsidy system.

The opposition party said the proposal is instead a controlled production incentive aimed at helping domestic refineries lower the cost of petrol while boosting Nigeria’s local refining capacity.

ADC National Publicity Secretary, Bolaji Abdullahi, made the position known while responding to the Presidency’s criticism of the proposal. He argued that the government’s projected N19.1 trillion cost failed to properly account for the structure of Atiku’s plan and the wider economic gains that could come from cheaper locally refined petrol.

“The Presidency has based its argument on a projected N19.1 trillion cost without properly considering how Atiku’s proposal is structured or the wider economic benefits of cheaper fuel produced locally,” Abdullahi said.

He further dismissed the government’s projected figure as unfounded, saying the proposed arrangement would operate within a defined fiscal limit. He added that there would be mechanisms to monitor the movement of crude from refinery intake through to the production of finished petroleum products.

According to the ADC, the Presidency is effectively attacking the former subsidy regime rather than the controlled model proposed by Atiku. The party argued that a properly monitored intervention could reduce the burden of high petrol prices without recreating the weaknesses associated with the previous system.

Abdullahi also questioned why the government could provide incentives to oil producers but reject a similar, targeted incentive designed to make petrol more affordable for Nigerians. He cited offshore production incentives of up to $11.50 per barrel as an example.

“If Nigeria can provide a production-linked fiscal incentive of up to $11.50 per barrel to stimulate offshore oil production, why is a carefully controlled crude-input incentive for domestic refineries dismissed as economic madness when its objective is to make fuel cheaper for Nigerians and build domestic refining capacity?” he asked.

The party said the economic cost of expensive petrol must also be factored into the debate. It linked high fuel prices to rising transport fares, food costs, production expenses and the broader cost-of-living crisis facing Nigerians.

The ADC maintained that Atiku’s proposal could be capped, audited and tracked, while helping Nigeria reduce petroleum imports, conserve foreign exchange and strengthen domestic refining. It said the focus should be on whether the proposed mechanism can deliver cheaper fuel without exposing public finances to uncontrolled subsidy payments.