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🇳🇬 Nigeria /Economy & Trade

Atiku in Dramatic U-turn, Wants Fuel Subsidy Returned

From ThisDay · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Former Nigerian Vice President Atiku Abubakar has pledged to reinstate the controversial petrol subsidy if elected president in 2027, reversing his previous stance.
  • President Bola Tinubu's administration criticized the proposal, calling it a sign of ignorance and desperation, and arguing it would undermine economic reforms.
  • Atiku defended his plan as a controlled mechanism to support domestic refineries and ensure consumer benefits, promising to track crude allocation for accountability.

Former Nigerian Vice President Atiku Abubakar has reignited a major economic debate by promising to reintroduce the petrol subsidy if elected president in 2027. This marks a significant reversal from his earlier advocacy for the subsidy's removal, setting the stage for a political clash over a policy central to President Bola Tinubu's economic reforms.

It shows your ignorance on governance, economy

— Bola TinubuPresident Tinubu's reaction to Atiku Abubakar's plan to return fuel subsidy.

President Tinubu's administration swiftly condemned Abubakar's proposal. In a statement, the Presidency described the plan as "retrogressive, fiscally unsustainable, and a product of desperation." Presidential spokesperson Bayo Onanuga argued that Nigeria's petroleum sector has evolved since the subsidy's removal in May 2023, with the emergence of domestic refining capacity. The administration contends that reinstating the subsidy would jeopardize ongoing reforms, create legal and fiscal complications, and deter investment in new refineries like the Dangote Refinery.

I will follow the barrel, ensure accountability

— Atiku AbubakarAtiku Abubakar's insistence on tracking crude allocation under his proposed subsidy plan.

Abubakar, however, defended his proposed "Atiku Economic Recovery Plan (AERP) 2027," insisting that every barrel of crude allocated under the scheme would be tracked for accountability. He argued that the government has not adequately accounted for the financial gains from subsidy removal. His proposal, he explained, is not a return to the opaque past subsidy regime but a controlled mechanism. Qualifying domestic refineries would receive crude at preferential prices under strict conditions related to production, efficiency, transparency, and domestic supply, ensuring benefits are passed to consumers.

No, you are desperate for power

— PresidencyThe Presidency's characterization of Atiku Abubakar's motives.

The debate highlights Nigeria's ongoing struggle to balance economic reforms with the social impact of fuel prices. Abubakar's shift in position is seen by some as a strategic move to gain political traction, while the presidency views it as a threat to its economic agenda. The effectiveness and sustainability of either approach remain a key point of contention.

Atiku confused, will never be president

— WikeA political figure's comment on Atiku Abubakar's stance.
DistantNews Editorial

Originally published by ThisDay. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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