Former Vice-President Atiku Abubakar has accused the Federal Government of applying a double standard in its petrol subsidy policy, alleging that petroleum companies receive generous fiscal incentives while ordinary Nigerians continue to bear the burden of rising fuel prices.
Atiku, the African Democratic Congress (ADC) presidential candidate, made the allegation in a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu.
He questioned the government’s decision to abolish petrol subsidies while continuing to offer tax credits, concessions and other incentives to investors in the oil and gas sector.
According to Atiku, Nigerians were told that removing the subsidy was necessary to reform the economy, but the government allegedly takes a different approach when dealing with major oil investors.
“Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes,” he said.
Atiku specifically cited the Federal Government’s deep offshore oil and gas incentives framework, which he said provides eligible projects with production tax credits of between $3 and $4.50 per barrel, with additional incentives capable of taking the total benefit to as much as $11.50 per barrel under certain conditions.
He therefore questioned why government intervention was considered undesirable when aimed at helping consumers but acceptable when it benefits investors.
“So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?” Atiku asked.
Atiku Questions ‘Subsidy-Free’ Claim
The former vice-president also challenged the Federal Government’s claim that petrol subsidy had been completely eliminated.
He referred to the audited accounts of the Nigerian National Petroleum Company Limited (NNPCL), which, according to him, recorded about N4.84 trillion in energy-security expenses and related shortfalls in 2023 and approximately N7.13 trillion in 2024.
Atiku said NNPCL had attributed part of the expenditure to the gap between the exchange rate used to determine the regulated PMS ex-coastal price and the prevailing exchange rate when import obligations were settled.
He questioned why such huge public funds were still being spent to bridge pricing gaps if Nigerians were already paying market-driven petrol prices.
“So, where exactly did the subsidy go?” Atiku asked, arguing that changing the terminology to “under-recovery”, “shortfall” or “energy security” did not change the fact that public resources were being used to cover the difference between the economic cost of petrol and its selling price.
‘We’re Not Returning to the Old Subsidy Regime’
Atiku also clarified his position on his proposal to restore petrol subsidy if elected president in 2027.
He said his proposed intervention would not amount to a return to the previous open-ended and opaque subsidy system.
Instead, he said his administration would introduce a targeted and capped programme that would be transparently budgeted and independently audited, while linking the intervention to increased domestic production.
He also proposed measures aimed at expanding refining capacity, promoting competition and improving the purchasing power of households.
“You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform,” Atiku said.
The ADC candidate further called for greater transparency surrounding tax credits, remissions and other incentives granted to petroleum companies.
He demanded disclosure of the beneficiaries of such incentives, the amount of government revenue forgone and the investments delivered in return.
Atiku also argued that Nigerian investors should have equal and transparent access to similar incentives.
He maintained that the success of economic reforms should ultimately be judged by whether they improve the living standards of Nigerians rather than by the level of hardship citizens are forced to endure.
His comments come days after he said he would restore petrol subsidy if elected president in 2027.
President Bola Tinubu has, however, criticised Atiku’s position, describing the former vice-president as “ignorant of governance and the economy.”
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