Former Vice President Atiku Abubakar has backed Dangote Refinery’s opposition to arbitrary petrol price controls, arguing that his proposed production subsidy would support Nigerian refineries, lower production costs and prevent domestic refiners from being forced to sell fuel at a loss.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku accused President Bola Tinubu of deliberately misrepresenting Dangote Refinery’s concerns in an attempt to discredit his proposed subsidy model.
Atiku said Dangote had raised a legitimate business concern, arguing that a private refinery that had invested billions of dollars could not reasonably be compelled to sell below cost indefinitely.
“Dangote raised a legitimate business concern. The Presidency turned it into a campaign of fear,” Atiku said.
He added that “a refinery which has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses,” describing such a demand as “reckless, economically destructive and unfair to any private investor.”
The former vice president explained that his proposal was different from the type of subsidy previously associated with imported petroleum products, saying he was advocating a production subsidy designed specifically to support refining within Nigeria.
“Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria. Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less,” he said.
According to Atiku, his proposal would reduce the cost of crude feedstock supplied to qualifying domestic refineries through a transparent, capped and independently verified arrangement.
He said the lower input cost would benefit consumers while allowing refineries to maintain legitimate operating expenses and a reasonable commercial margin.
“There is a clear difference between helping a producer reduce costs and forcing that producer to sell at a loss. The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians,” he said.
Atiku rejected the argument that every form of subsidy automatically creates dependence on imported products, describing the position as “a brazen, dishonest and crude distortion designed to mislead Nigerians.”
“This is not a subsidy for foreign refineries. It is not a subsidy for importers. It is not a subsidy for middlemen. It is a subsidy for Nigerian production,” he said.
He argued that Dangote Refinery’s warning against being forced to sell below cost demonstrated the importance of protecting the commercial viability of domestic refineries.
Atiku said his proposed policy would not involve fixing an arbitrary petrol price and transferring the resulting financial burden to private refiners.
He maintained that any additional relief beyond what lower crude-input costs could sustainably provide should be openly budgeted, capped and independently audited.
“You cannot announce a politically convenient petrol price and quietly dump the cost on the refinery. That is not policy. That is confiscation by another name,” he said.
The former vice president said the production subsidy would include safeguards such as a strict fiscal ceiling, a maximum support level per barrel, independent verification of supported crude, electronic monitoring of crude intake and refined output, domestic-supply obligations, transparent pricing and independent audits.
He also proposed severe penalties for diversion or fraudulent practices.
“We will know how many barrels receive support, which refinery receives them, what is produced, what it costs the taxpayer and what benefit Nigerians receive. No mystery barrels. No endless claims. No blank cheques,” he said.
Atiku said Nigeria’s long-term refining industry would rely heavily on private investment, making it necessary to protect the commercial viability of domestic refineries.
He accused the Tinubu administration of turning economic hardship into an ideology under the banner of reform, saying Nigerians had endured rising fuel, transportation and food costs while being repeatedly told that the difficulties were evidence that reforms were working.
Atiku also criticised what he described as the government’s inconsistent approach to supporting businesses, alleging that the Tinubu administration had granted waivers, tax credits, incentives and concessions to businesses while opposing his proposed production subsidy.
He urged the Presidency to stop misrepresenting his proposal and then attacking a version of the policy he said he had never proposed.
“We are proposing a production subsidy not an import subsidy. We are not proposing to subsidise petrol refined abroad. We are not proposing to force Dangote or any other Nigerian refinery to sell below cost,” he said.
He challenged the Presidency to “first stop lying about what we are proposing” if it wanted a genuine debate on the policy.
Atiku said Dangote’s position ultimately reinforced the argument for a production subsidy, maintaining that the concerns of domestic refiners and the high cost of living faced by Nigerians could be addressed through the same approach.
“Dangote is right that a refinery should not be forced to carry the burden of an artificially imposed price. We agree. Nigerians are also right that the present cost of fuel, transportation, food and doing business has become unbearable. Our production subsidy answers both concerns,” he said.
He said Nigeria must choose between maintaining a system where citizens continue to pay high costs while government explains the hardship, and adopting a production-focused model designed to reduce costs.
“We choose production. We choose Nigerian refining. We choose Nigerian jobs. We choose affordability,” he said.
Atiku concluded by restating his position on the proposed policy.
“Subsidise Nigerian production, not foreign importation. Produce here. Refine here. Create jobs here. Pay less here. That is the Atiku production subsidy model, and no amount of propaganda from the Tinubu Presidency can change what it is.”
Source: Phrank Shaibu / Atiku Abubakar
