The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to provide detailed legal, fiscal and operational explanations for his proposal to introduce a production subsidy for locally refined petrol.
The council’s position followed Atiku’s recent call for measures that would lower the prices of petrol and diesel, including a proposed subsidy targeted at domestically refined petroleum products. Atiku has previously confirmed that he intends to restore a form of petrol subsidy if elected in 2027.
In a statement issued on September 20, 2026, APC-PCC spokesman Dele Alake argued that the proposal raises questions about how such an intervention would operate within Nigeria’s existing petroleum-sector laws, particularly the Petroleum Industry Act (PIA) 2021.
One of the central issues highlighted by the campaign council is Section 205(1) of the PIA, which provides for wholesale and retail petroleum-product prices to be determined under unrestricted free-market conditions.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also recently clarified that it does not ordinarily set petrol pump prices or issue administrative pricing templates. According to the regulator, government intervention in pricing is subject to the conditions established by the PIA, including circumstances involving a formally established market failure.
Against this background, the APC-PCC asked Atiku to clarify whether refineries benefiting from his proposed production subsidy would be required to sell petrol at a government-prescribed price.
If such a price condition would apply, the council wants the former vice president to identify the legal provisions that would permit the government to impose it and explain how the arrangement would comply with the PIA.
If refiners would instead remain free to determine their selling prices, the council questioned how a government subsidy would guarantee that consumers ultimately receive cheaper petrol.
The campaign council also wants Atiku to provide a detailed financial estimate of the proposed intervention. According to the APC-PCC, the potential cost could reach between ₦17 trillion and ₦21 trillion annually, depending on factors such as the level of crude-oil discount, the volume covered and whether the subsidy would apply to crude supplied to refineries generally or only to petrol produced for the domestic market.
The council said Nigerians should be provided with details including the proposed subsidy rate, annual expenditure limit, volume of crude or petrol covered, funding source and mechanisms for ensuring that the benefit reaches consumers.
It also called for safeguards against possible diversion, smuggling and fraudulent claims, as well as clarification on whether implementing the policy would require amendments to the Petroleum Industry Act.
The APC-PCC further argued that an appropriation by the National Assembly, while capable of authorising government expenditure, would not automatically settle the separate regulatory questions surrounding petroleum pricing under the PIA.
The council also raised questions about Atiku’s current position in relation to his earlier views on petroleum-subsidy reform. Atiku has publicly maintained that he would restore a targeted subsidy if elected president in 2027. In August, he wrote that his position on subsidy had not changed and that he would restore it, while distinguishing his proposal from the former import-subsidy arrangement.
The APC-PCC said Atiku should explain how his proposed model would differ from the previous subsidy system and what measures would prevent the problems historically associated with petroleum subsidies, including alleged diversion and fiscal losses.
The statement also referenced Nigeria’s broader transition toward deregulation in the downstream petroleum sector. It noted that the deregulation process has evolved over several administrations and culminated in the Petroleum Industry Act, which established the current framework for the sector.
Beyond petrol subsidies, the APC-PCC highlighted the Tinubu administration’s alternative approach to reducing transportation costs through compressed natural gas (CNG) and electric mobility.
According to the campaign council, more than 120,000 vehicles have been converted to CNG, while CNG and electric buses have been deployed on several routes. The government has also announced plans to expand these programmes in partnership with state governments.
President Bola Tinubu recently said that his administration expects more Nigerians to begin experiencing measurable reductions in transportation costs from October 1, following an agreement reached with the 36 state governors. The government has presented CNG and electric transportation as part of its strategy for easing the impact of high energy and transport costs.
The APC-PCC cited examples of reduced fares on selected CNG and electric-bus routes, including services in Borno, Niger, Kaduna and Adamawa states. It also pointed to Abia State’s deployment of electric buses and charging infrastructure.
The campaign council contrasted this approach with Atiku’s proposed production subsidy, arguing that the former vice president should first provide detailed information about the policy’s legal foundation, cost and mechanism for delivering lower pump prices.
The statement also pointed to developments in Nigeria’s domestic refining industry, particularly the Dangote Petroleum Refinery, as evidence of increased investment following downstream-sector reforms.
The APC-PCC acknowledged that elevated petrol prices continue to place pressure on households, businesses and transport operators. It said the government would continue pursuing measures aimed at supporting Nigerians while addressing issues affecting petroleum prices.
The council also linked recent movements in petrol and diesel prices to international crude-oil market conditions, noting that changes in global crude prices can influence domestic fuel prices in a deregulated market.
It added that regulatory authorities are working with relevant agencies to address issues including alleged price-gouging and the movement of petroleum products across Nigeria’s borders.
At the centre of the APC-PCC’s argument is its demand for greater detail about Atiku’s proposed production subsidy. The council said the policy should be accompanied by a clear legal framework, transparent funding mechanism, defined beneficiaries and measurable conditions for ensuring that any government support ultimately benefits consumers.
The controversy comes as fuel pricing and subsidy policy remain major issues ahead of Nigeria’s 2027 presidential election. Atiku has argued for targeted intervention to ease the economic burden on Nigerians, while the Tinubu administration has continued to defend market-based petroleum pricing alongside alternative-energy and transport initiatives.
Ultimately, the debate over the proposal is likely to centre on how any subsidy would be legally structured, how much it would cost the government, how the benefits would reach consumers and what safeguards would be established to prevent abuse.
ALSO READ: Tinubu Sets October 1 Deadline as CNG Programme Targets Lower Transport Fares
The APC-PCC has therefore called on Atiku to publish a comprehensive policy document and provide independent legal and fiscal analysis supporting his proposal.
[…] APC Campaign Council Challenges Atiku Over Legal and Fiscal Basis of Petrol Subsidy Proposal […]