2027: Tinubu’s aide identifies ‘arithmetic flaw’ in Atiku’s petrol subsidy plan
Tinubu’s Aide Critiques Atiku’s Petrol Subsidy Proposal
By Bayo Wahab
Special Adviser to President Bola Tinubu on Media and Public Communication Sunday Dare has raised concerns regarding former Vice President Atiku Abubakar’s plan to restore petrol subsidies should he win the presidency in 2027. Dare labeled Atiku’s proposal an “arithmetic flaw,” arguing that it poses significant economic challenges.
In a post on social media platform X, titled “The Arithmetic Flaw in Subsidizing the Barrel,” Dare criticized the former vice president’s idea of providing crude oil to local refineries at reduced prices. He argued that this approach could lead to fiscal deficits, market disruptions, and increased smuggling.
Dare asserted that selling oil below market value would diminish the revenue allocated to the federal, state, and local governments. “Who Pays the Bill? Selling federation crude below market price creates an immediate fiscal hole in the Federation Account, directly slashing allocations to federal, state, and local governments for schools, hospitals, and security,” he stated.
He added that preferential pricing for crude could undermine competition within the downstream petroleum sector, potentially leading to artificial monopolies and destabilizing smaller independent refiners. This arrangement, he warned, also risks contradicting the deregulation provisions set out in the Petroleum Industry Act.
Dare expressed concern that the implementation of subsidized petrol at a significantly lower price in Nigeria compared to neighboring countries could revive fuel smuggling activities. “Any regime that creates a wide gap between Nigerian pump prices and neighboring West African markets guarantees a return of cross-border fuel arbitrage, no matter how many ‘auditors’ are promised,” he noted.
In concluding his criticism, Dare compared Atiku’s proposal to a temporary fix for a deeper issue, describing it as “an economic safari” that focuses on symptomatic relief rather than addressing fundamental economic problems.
This exchange of views comes after Atiku reaffirmed his commitment to restoring petrol subsidies if elected, despite earlier comments from his media aide, Paul Ibe, suggesting a phased approach to the subsidy. Atiku clarified his stance on social media, stating, “On the question of subsidy, my position has not changed and will not change: I will restore it!” He emphasized that Nigeria has ample resources to alleviate the economic burdens on its citizens, asserting that the nation should not neglect its people in times of hardship.
