Atiku’s subsidy plan failed under Obasanjo – Presidency
Presidency Critiques Atiku Abubakar’s Refinery Subsidy Proposal
The Nigerian Presidency has dismissed former Vice President Atiku Abubakar’s proposal to subsidize crude oil for local refineries, citing a failed attempt during former President Olusegun Obasanjo’s administration.
Otega Ogra, Senior Special Assistant to President Bola Tinubu on Digital and New Media, responded critically to Abubakar’s suggestion on social media platform X (formerly known as Twitter). “Nigeria already tried your production-subsidy to local refineries idea while you were Vice President,” he stated. Ogra referred to the “shambolic results” of that initiative, which he claims led to decreased utilization rates at key refineries.
Ogra highlighted that the Warri refinery’s utilization fell to 14.27 percent in 2003 and 9.1 percent in 2004, while the Kaduna refinery experienced similar declines, reporting 15.96 percent and 26 percent, respectively. He also noted a drop in utilization at the Port Harcourt refinery, which fell from 60.73 percent in 2001 to 31.04 percent in 2004.
Furthermore, Ogra pointed out that despite the subsidy, petrol prices rose significantly, tripling by 2004 and nearly quadrupling by the end of Abubakar’s term in office. He referenced an October 2003 presidential directive that mandated the Nigerian National Petroleum Corporation (NNPC) to pay the full international price for crude, effectively cancelling the subsidy at that time.
“You sold Nigerians a failed production subsidy policy once,” Ogra remarked. He called into question any claims regarding the success of the initiative, especially considering the long-term negative impact it had on the nation’s refineries.
The exchange highlights ongoing debates in Nigeria about the efficacy of oil subsidies and their potential revival in the current economic landscape.
