Subscribe: Gist E-Paper
The African Democratic Congress (ADC) has rejected the Presidency's claim that implementing its presidential candidate Atiku Abubakar's proposed fuel subsidy policy would cost Nigeria about ₦19.1 trillion annually, describing the estimate as misleading and unsupported.
In a statement on Tuesday, the opposition party accused the Presidency of attacking a hypothetical subsidy model rather than the policy Atiku is proposing ahead of the 2027 general election.
According to the ADC, Atiku's plan is not a return to the former petrol subsidy regime but a production-based incentive that would support local refineries through a controlled crude supply mechanism aimed at lowering fuel prices and boosting domestic refining.
The party argued that the Presidency's estimate was based on unverified assumptions, including an $80 per barrel crude oil price and a $40 subsidy differential, insisting that such projections do not reflect the actual structure of Atiku's proposal.
The ADC maintained that the proposed policy would encourage local refining, reduce dependence on imported petroleum products, conserve foreign exchange, create jobs and ultimately lower the cost of transportation, food and other essential goods.
The party also questioned the Federal Government's handling of petroleum-related spending, citing the Nigerian National Petroleum Company (NNPC) Limited's audited accounts and calling for greater transparency over trillions of naira spent on energy security and other petroleum interventions.
It further argued that the government had already embraced fiscal incentives in the oil sector through tax credits for deep offshore projects and import duty waivers, asking why similar incentives aimed at reducing fuel prices for Nigerians were being criticised.
The ADC said the Presidency had failed to explain the economic cost of maintaining the current fuel pricing regime, including its impact on inflation, manufacturing, logistics, household incomes and foreign exchange demand.
The party insisted that cheaper fuel would stimulate economic growth across multiple sectors and improve the living conditions of millions of Nigerians.
It challenged the Federal Government to provide evidence that Atiku's proposal would cost ₦19.1 trillion and prove that the projected fiscal cost outweighs the expected economic benefits.
The ADC maintained that the debate should not be about whether Nigeria should subsidise fuel, but about how government interventions can best improve the welfare of citizens while strengthening domestic refining and the broader economy.
