The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President and Presidential candidate of the African Democratic Congress (ADC) Atiku Abubakar to provide a comprehensive legal, fiscal and operational framework for his proposed petrol production subsidy, arguing that the plan raises critical questions that remain unanswered.
In a statement issued on Sunday by its spokesman, Dele Alake, the APC-PCC said Atiku’s proposal for a “production subsidy” on locally refined petrol was inconsistent with the principles of downstream deregulation and appeared to lack a clearly defined legal basis under the Petroleum Industry Act (PIA) 2021.
The council’s reaction followed Atiku’s recent press conference in Abuja, where he reiterated his proposal to subsidise locally refined petrol in order to reduce pump prices and also urged President Bola Tinubu to lower the cost of petrol and diesel.
According to the APC-PCC, Section 205(1) of the Petroleum Industry Act provides that wholesale and retail prices of petroleum products should be determined by unrestricted market forces, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has maintained that it does not fix fuel prices except under specific statutory conditions.
The council therefore asked Atiku to explain whether refiners benefiting from his proposed subsidy would be compelled to sell petrol at government-determined prices.
“If the answer is yes, he should identify the legal framework under which such price controls would operate. If the answer is no, he should explain how public funds given to refiners would translate into lower prices for consumers,” the statement said.
The APC-PCC further argued that any subsidy implemented through discounted crude oil supplies to domestic refiners could significantly reduce revenues accruing to the Federation Account and impact allocations to the federal, state and local governments.
It claimed that, depending on the scale of implementation, the annual cost of the proposed intervention could range between ₦17 trillion and ₦21 trillion.
The council demanded that Atiku provide Nigerians with details on the proposed subsidy rate, annual expenditure ceiling, volume of crude or petrol to be covered, funding source, consumer protection mechanisms, anti-smuggling safeguards and whether amendments to the Petroleum Industry Act would be required.
The APC-PCC also accused the former vice president of reversing his earlier position on fuel subsidy removal.
It recalled that Atiku had, during a 2022 engagement at the Lagos Business School, described petrol subsidy as fraudulent and pledged to complete its removal if elected president.
The council noted that Atiku subsequently announced on social media in August 2026 that he would restore subsidy, insisting that he owes Nigerians an explanation for the apparent policy shift.
“His latest position must be reconciled with his previous support for deregulation. Nigerians deserve to know why he now advocates restoring subsidy in another form and how the proposed arrangement would avoid the corruption, smuggling and fiscal leakages associated with the old subsidy regime,” the APC-PCC stated.
The council also highlighted the historical evolution of petroleum sector reforms, noting that deregulation of diesel and aviation fuel began under the administration of former President Olusegun Obasanjo, during which Atiku served as vice president, while petrol subsidy removal was eventually provided for under the Petroleum Industry Act.
Defending the Tinubu administration’s approach, the APC-PCC said the government was prioritising alternative energy solutions, including compressed natural gas (CNG) and electric mass transit systems, to cushion transportation costs.
It said more than 120,000 vehicles had been converted to CNG, while several states had begun deploying CNG and electric buses, resulting in reduced transport fares in parts of the country.
The council maintained that the administration remained committed to a deregulated petroleum market, which it said had encouraged investment in domestic refining, including the expansion of the Dangote Petroleum Refinery.
While acknowledging the economic burden of high fuel prices on Nigerians, the APC-PCC argued that returning to a subsidy regime would revive the challenges of mounting public debt, fuel scarcity, smuggling and revenue losses.
The council therefore urged Atiku to publish a detailed policy document and subject his proposal to independent legal and fiscal scrutiny.
“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” the statement added.
