2027: Atiku will restore petrol subsidy, phase it out gradually – aide
Atiku Abubakar’s Aide Proposes Temporary Petrol Subsidy if Elected
Paul Ibe, spokesperson for former Vice President Atiku Abubakar, announced that a potential Atiku administration would consider reintroducing a petrol subsidy on a temporary basis if Abubakar wins the 2027 presidential election.
Ibe made this statement during an interview on AIT, clarifying that the proposed subsidy would serve as a short-term economic measure. This policy aims to provide households and businesses with time to adjust to current economic conditions before phasing out the subsidy.
He emphasized that Abubakar is not looking to revert to past subsidy practices. Instead, the plan involves using Nigeria’s crude oil resources to bolster domestic refining and lower the cost of petroleum products.
“We are not returning to Egypt. We are not going back to the old regime that was opaque,” Ibe stated.
Under the proposed plan, crude oil would be sold to local refineries at a reduced price, enabling them to produce petrol and diesel more affordably. Ibe explained that the cost savings from this initiative would ultimately reduce prices for consumers at the pump.
“The crude oil will be sold at a discounted price to refiners, which will allow them to produce fuel and diesel at a lower cost. When they are able to produce cheaply, they can then sell at a realistic market price,” he noted.
To ensure transparency and efficiency, Ibe mentioned the establishment of an independent committee responsible for determining appropriate refinery pricing based on prevailing market conditions.
While acknowledging the deregulation of the downstream sector, Ibe asserted that the government still has a role in monitoring prices to help achieve its economic goals.
“There’ll be a window because, of course, we deregulated. You may not fix the price, but you can have price monitoring to ensure that everybody aligns with what the government hopes to achieve,” he said.
Ibe criticized President Bola Tinubu’s administration for the manner in which the petrol subsidy was removed, arguing that Nigerians were not given adequate time or resources to manage the impact of such changes.
He compared the government’s simultaneous economic reforms to a physician performing multiple major surgeries on a patient without allowing time for recovery, stressing the need for a more measured approach.
“It would be unwise for any doctor to perform major surgeries back to back without giving the patient time to heal,” he remarked.
He highlighted that the removal of the petrol subsidy, along with adjustments in foreign exchange and the withdrawal of electricity subsidies, has increased economic pressure on households and businesses.
Ibe stated that Abubakar’s proposed policy would work to rejuvenate economic activity and enhance productivity for manufacturers and other sectors.
Moreover, he articulated the need for a broader economic strategy that moves beyond reliance on oil.
“We also need to start thinking about an economy that is beyond the oil economy. We need to diversify our economy,” Ibe concluded.
