Presidency Accuses Atiku of Policy Inconsistency Over Fuel Subsidy

ABUJA — The Presidency has faulted former Vice-President and ADC presidential candidate, Atiku Abubakar, over his proposal to restore petrol subsidy, describing his recent positions as inconsistent and politically motivated.

The Presidency accused Atiku of engaging in policy flip-flops and said he was “suffering from a lack of basic understanding of his newfound policy prescription.”

The criticism was contained in a statement by the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga.

According to the Presidency, Atiku’s proposal suggests a misunderstanding of how petrol prices are determined, arguing that government subsidy or increased competition does not automatically make petrol cheaper.

It said the former vice-president’s recent comments had produced conflicting accounts of what an Atiku government would do about petrol subsidy.

The statement said Atiku’s media aide, Paul Ibe, first announced that Atiku would restore petrol subsidy if elected in 2027 but would eventually phase it out after the economy recovered.

However, another senior aide, Phrank Shaibu, reportedly described Ibe’s comments as an “unauthorised and misleading characterisation” of Atiku’s position.

The Presidency said Atiku then clarified the matter himself, insisting that his position “has not changed” and promising to restore a “targeted subsidy” if elected president.

Atiku was quoted as saying, “I will restore a targeted subsidy and put purchasing power back in the hands of Nigerians.”

The Presidency said the conflicting explanations raised substantive policy questions and were not simply a matter of wording.

It questioned why the proposed subsidy was initially presented as a temporary measure, only for that explanation to be rejected before Atiku reaffirmed his commitment to restoring the intervention.

The statement said Nigerians deserved clear details rather than “policy by trial and error.”

On the economics of petrol prices, the Presidency said several factors determine the final price of fuel, including international crude oil prices, exchange rates, refining costs, transportation, distribution and other market expenses.

It argued that although competition could increase efficiency and affect margins, it could not insulate the country from global crude oil prices and other costs associated with petroleum products.

The Presidency also rejected what it described as an overly simplistic link between petrol prices and food inflation.

It acknowledged that higher energy and transportation costs can affect food prices but said other factors, including agricultural productivity, insecurity, exchange rates, logistics, storage, flooding, input costs, money supply and supply constraints, also play significant roles.

It therefore urged the presentation of a broader economic programme capable of tackling the multiple factors driving the cost of living.

The Presidency challenged Atiku to explain the details of his proposed “targeted subsidy”, including how much it would cost, who would benefit, how it would be funded and what conditions would trigger its eventual removal.

It argued that Nigerians should not be subjected to another costly subsidy regime without clear details about its financing and implementation.

The Presidency also called on Atiku to produce what it described as a coherent, costed and practical petroleum policy rather than “playing politics” with a policy it claimed had improved the fiscal position of the federal, state and local governments and contributed to macroeconomic stability.

It accused the ADC candidate of election-driven populism and warned against subjecting the economy to “policy somersaults, incoherence, destructive populism and election gimmicks.”

The statement also questioned Atiku’s proposal to link subsidy to crude oil prices, asking whether the former vice-president had considered the range of products generated from a barrel of refined crude.

According to the Presidency, petrol accounts for about 45 per cent of refined products from a barrel, with other products including aviation fuel, kerosene, diesel, petrochemical feedstocks, asphalt, hydrocarbon gas liquids, lubricants and waxes, petroleum coke and sulphur.

It noted that diesel was deregulated in 2004 during the Obasanjo-Atiku administration, while kerosene and jet fuel were deregulated at different times.

The Presidency consequently asked whether Atiku would extend subsidy to other petroleum products if his argument was based on subsidising products derived from crude oil.

It also questioned whether refineries receiving discounted crude would retain the profits from other refined products while subsidy support was directed mainly at petrol.

The Presidency concluded that Atiku had not demonstrated sufficient understanding of the policy he was proposing.

“The former vice-president is definitely suffering from a lack of basic understanding of his newfound policy prescription,” the statement said.

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