The Presidency has criticised former Vice-President Atiku Abubakar’s proposal to introduce a production subsidy for crude supplied to local refineries, arguing that a similar policy was previously implemented under former President Olusegun Obasanjo’s administration but failed.
Otega Ogra, Senior Special Assistant to President Bola Tinubu on Digital and New Media, made the claim while responding to Atiku’s proposal for a production subsidy aimed at supporting local refineries.
Ogra argued that Nigeria had already experimented with the policy when Atiku served as Vice-President and said the results were poor.
“Excuse me, sir. Nigeria already tried your production-subsidy to local refineries idea while you were Vice President. We know the shambolic results of that production subsidy. You know it too.”
Ogra cited refinery utilisation figures from the period, saying the Warri refinery operated at 14.27 percent in 2003 and 9.1 percent in 2004, while Kaduna refinery recorded utilisation rates of 15.96 percent and 26 percent during the same period.
He added that the utilisation rate of the Port Harcourt refinery fell from 60.73 percent in 2001 to 31.04 percent in 2004.
“Meanwhile, price of petrol more than tripled by 2004 and nearly quadrupled by the time you left office despite your production subsidy to local refiners.
“On October 9, 2003, your same administration cancelled the discount itself through Presidential directive PRES/158.
“President Obasanjo ordered NNPC to pay full international price for refinery crude. Your production subsidy was tried, failed and scrapped, with you as Vice President.”
Ogra therefore challenged Atiku to explain why Nigerians should embrace the proposal again, given the Presidency’s position that the policy had already failed when it was previously implemented.
“So, before selling Nigerians this failed production subsidy policy again, answer one simple question.
“I know there are many Nigerians who were too young to know what was happening then. But if you may tell them, where is the evidence that it worked the first time?
“It’s still the same theory you practiced then, and we haven’t changed country yet.
“One thing we already have, are the failed results of that experiment, Alhaji.”
The exchange comes amid an ongoing debate over how Nigeria can support domestic refining and reduce the cost of petroleum products. Atiku has proposed subsidising crude supplied to local refineries as part of his approach to lowering petrol and other costs.
Source: Presidency
