The presidency’s assertion that former Vice President Atiku Abubakar’s plan to lower gas prices to roughly N600 per litre amounted to a return to Nigeria’s previous fuel subsidy system has been denied by the African Democratic Congress (ADC).
The party claimed that Atiku’s plan was actually a controlled production incentive for domestic refineries, intended to boost local refining capacity and reduce petrol prices.
Bolaji Abdullahi, the ADC National Publicity Secretary, made this statement in reaction to the proposal’s criticism by the presidency.
According to him, “The Presidency has based its argument on a projected N19.1 trillion cost without properly considering how Atiku’s proposal is structured or the wider economic benefits of cheaper fuel produced locally.”
He added, “We are at a loss how the presidency conjured up this phantom figure. But we do not agree with it,”
According to Abdullahi, Atiku’s plan would include a budgetary cap and systems for tracking the flow of oil from refinery intake to final petroleum products.
The party said that Atiku’s planned controlled subsidy plan, which it claimed was meant to replace the previous subsidy system, was not being criticised by the presidency.
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The ADC also questioned the government’s rationale for offering incentives to oil companies while opposing policies meant to lessen Nigerians’ burden of exorbitant fuel costs.
Abdullahi asked why a comparable, controlled incentive for domestic refineries should be deemed inappropriate, citing offshore oil production incentives that can exceed $11.50 per barrel.
“If Nigeria can provide a production-linked fiscal incentive of up to $11.50 per barrel to stimulate offshore oil production, why is a carefully controlled crude-input incentive for domestic refineries dismissed as economic madness when its objective is to make fuel cheaper for Nigerians and build domestic refining capacity?” he asked.
The ADC further contended that when evaluating Atiku’s plan, the expense of keeping petrol prices high should also be taken into account.
It claimed that rising transportation costs, food prices, production costs, and the broader cost-of-living crisis were all caused by pricey gas.
In addition to potentially lowering petroleum imports, saving foreign currencies, and promoting domestic refining, the party insisted that its plan would be capped, audited, and traceable.
