Atiku fires back at Tinubu over ‘ignorant’ fuel subsidy comment

Former Vice President Atiku Abubakar has strongly refuted President Bola Tinubu's assertion that his proposed intervention in Nigeria's petroleum sector is "economically ignorant." Abubakar accused the current administration of exacerbating the cost-of-living crisis while simultaneously touting increased government revenues.

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The real ignorance is believing suffering is economic policy. Tinubu removed the subsidy from Nigerians’ pockets, but he is yet to remove the questions from his books.

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Abubakar asserted that President Tinubu is ill-positioned to lecture Nigerians on economic management. He pointed to the removal of the petrol subsidy, the liberalization of the foreign exchange market, and the subsequent surge in inflation, transport costs, and household expenses as evidence of the administration's economic missteps.

Abubakar clarified that his proposal is not a return to the subsidy regime that existed before the Tinubu administration. Instead, he described it as a "targeted and temporary production-support mechanism" designed to boost domestic refining capacity and shield consumers from extreme price volatility. He emphasized that the economic conditions have significantly changed since the subsidy removal in May 2023, necessitating a reassessment of policy approaches.

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Economic prescriptions respond to prevailing conditions. But other things are no longer equal in Tinubu’s Nigeria.

"Economic prescriptions respond to prevailing conditions," Abubakar stated, adding, "But other things are no longer equal in Tinubu’s Nigeria." He argued that the subsidy removal, implemented without adequate cushioning measures, triggered a cascade of economic problems, including sharp increases in petrol and transportation costs, rising food prices, and a significant depreciation of the naira.

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Atiku is not proposing the resurrection of the corrupt, open-ended subsidy bazaar. He proposes a targeted, capped, budgeted, time-bound and independently audited production-support mechanism tied to domestic production and protected against arbitrage.

Abubakar challenged the Federal Government to account for the continuing petroleum under-recoveries and energy-security costs within the Nigerian National Petroleum Company Limited's accounts, citing figures totaling approximately ₦17.5 trillion. He questioned the rationale behind these costs if the subsidy regime was truly eliminated, asking, "If subsidy is dead, why are under-recoveries alive?"

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Tinubu pronounced first and searched for a plan afterwards. Atiku studied the consequences and produced a solution.