The All Progressives Congress Presidential Campaign Council (APC-PCC), has challenged the Presidential Candidate of the African Democratic Congress (ADC), Atiku Abubakar to give the legal and fiscal explanation that formed the basis of his proposed petrol subsidy.
A statement on Sunday by the spokesperson of the APC-PCC, Mr. Dele Alake, noted that the proposal raises critical legal, fiscal and practical questions.
Alake particularly said for a start, Atiku should read the PIA, as he appears out of touch with reality and the oil sector’s current dynamics.
He explained that Section 205(1) of the Petroleum Industry Act, PIA, 2021 provides that wholesale and retail prices of petroleum products shall be determined by unrestricted free-market conditions.
He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), had on Saturday, September 19, 2026, gave detailed explanation that it neither fixes pump prices nor issues administrative templates, except where statutory conditions for intervention are met.
Alake said that the Authority said “No such market failure has been declared.”
He therefore said; “Atiku should therefore explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price.
“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act.
“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations. Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices,” he stated.
Atiku, had at a press conference in Abuja on Friday, reiterated his plan for a “production subsidy” for locally refined petrol, stressing that it would reduce pump prices, thus called on President Bola Ahmed Tinubu to slash the cost of petrol and diesel.
However, Alake said Atiku must disclose the cost and funding source, saying that if the intervention takes the form of preferentially priced crude for domestic refineries, any discount would reduce revenue accruing to the Federation and to federal, state and local governments, potentially triggering the fiscal crisis that left 27 states unable to pay salaries before 2023.
According to him; “Based on publicly reported refinery throughput and domestic petrol-supply figures, the cost of the new subsidy could run as high as N17 or N21 trillion annually, depending on the discount size, the volume covered, and whether the support applies to the entire barrel or only to petrol sold domestically”.
The APC-PCC spokesperson further listed questions Atiku must answer to include the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, source of funding, mechanism guaranteeing lower pump prices, safeguards against diversion and smuggling, and whether amendments to the PIA would be required.
According to Alake; “An appropriation by the National Assembly may authorise expenditure, but it would not by itself resolve every regulatory question arising under the Petroleum Industry Act. If Atiku intends to amend the law, he should say so plainly”.
The APC-PCC further said Atiku’s latest position contradicts his previous stance, stating that in November 2022 at the Lagos Business School, Atiku described the petrol subsidy as fraudulent and pledged to complete its removal, adding that he chaired the committee that removed its first and second phases and also cited Atiku’s post on X on August 25, 2026: “I will restore it!”
Alake specifically said that deregulation of the downstream sector began under the Obasanjo-Atiku administration, with diesel deregulated in June 2003 and aviation fuel also moved to market pricing under the same government, adding that Kerosene was deregulated in 2016 under former President Muhammadu Buhari, while petrol was the last major product retained under subsidy until June 2023 under the PIA.
He said; “Nigeria spent about two decades developing the PIA. The reform process began in 2000, during the first term of the administration in which Atiku served as Vice President. He should therefore explain how his new proposal aligns with the legal and regulatory framework that emerged from that process”.
Alake stated that the Tinubu administration has instead focused on cheaper alternatives like Compressed Natural Gas, CNG, and electric mass transit, saying that over 120,000 vehicles have been converted to CNG, with thousands more done privately.
Referencing President Tinubu’s statement on Saturday, Alake said that from October 1, more Nigerians should begin to see measurable reductions in transportation costs.
The APC=PCC spokesperson said commuters in seven states and the FCT are already paying between 31 and 83 per cent less on routes served by CNG and electric buses, listing Borno where fares are N50 to N100 against N300 to N600 charged by commercial operators, Suleja-Abuja service at N550 instead of N800, Kaduna free CNG buses which carried over 1.4 million passengers in five months of 2025 saving N1.39 billion, Adamawa with up to 50 per cent fare reduction, and Abia with 40 electric buses and 20 charging stations.
According to Alake; “In contrast, Atiku is reaching into Nigeria’s past with another subsidy scheme that will enrich smugglers in particular. He has yet to tell Nigerians what it will cost or under what law it will operate.
“President Tinubu urges Nigerians to ignore politicians who want to drag the country back to the subsidy era. That road leads to mounting debt, petrol queues, payments pocketed by smugglers and cheap Nigerian fuel subsidised for the whole of West Africa,” he said.
According to the APC-PCC; “Nigeria will continue with a deregulated market that has attracted investment in refining. Dangote Refinery has reached its 650,000 barrels per day capacity and achieved 700,000 bpd during tests, with an IPO targeting N2.1 trillion for expansion”.
The statement by Alake acknowledged pressure from higher petrol prices, but noted that petrol sold for about N830 per litre before the Middle East crisis pushed crude above $100 per barrel, adding that de-escalation could lower prices globally.
Alake further said that the NMDPRA is working with the FCCPC against price-gouging and with Customs against diversion across borders, saying; “Every proposed intervention in the downstream sector must be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers”.
He further said; “Atiku should provide Nigerians with a detailed policy document and an independent legal and fiscal analysis of his proposal. Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework.
“It will also qualify as one of those fantasies and policy options anchored on what President Olusegun Obasanjo described in his book, My Watch, as Atiku’s ‘propensity for poor judgment’, he said.
