The All Progressives Congress Presidential Campaign Council (APC-PCC) has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and operational basis of his proposal to introduce a production subsidy for locally refined petrol.
The council said Atiku must explain how the proposed intervention would operate within the Petroleum Industry Act (PIA) 2021 and what mechanism would ensure that any benefit given to refiners is passed on to consumers through lower petrol pump prices.
The APC-PCC made the demand in a statement signed by its spokesman, Dele Alake, on Sunday, following Atiku’s renewed call for lower petrol and diesel prices.
It argued that Section 205(1) of the PIA provides for wholesale and retail petroleum prices to be determined under unrestricted free-market conditions.
The council also referenced the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s recent position that it does not fix petrol pump prices or issue administrative price templates except where the statutory conditions for intervention are met.
“Atiku should therefore explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price,” the statement said.
The APC-PCC said if government support to refiners would not come with an enforceable price condition, Atiku should explain how the proposal would guarantee lower prices at filling stations.
It also challenged him to disclose the cost and funding mechanism for the proposed subsidy.
According to the council, Atiku’s earlier proposal suggested that the intervention could involve supplying domestic refineries with crude at preferential prices.
It argued that such a discount could reduce revenue accruing to the Federation and consequently affect allocations to the federal, state and local governments.
The APC-PCC estimated that the proposed intervention could cost between N17 trillion and N21 trillion annually, depending on the discount applied, the volume covered and whether the support would apply to the entire crude barrel or only petrol sold domestically.
The council, however, did not provide a detailed calculation for the estimates in its statement.
It demanded that Atiku disclose the proposed subsidy rate, annual spending ceiling, volume of crude or petrol to be covered, funding source, mechanism for guaranteeing lower pump prices and safeguards against diversion, smuggling and fraudulent claims.
It also asked whether amendments to the PIA would be required to implement the proposal.
The APC-PCC further questioned Atiku’s current position in relation to his previous support for downstream deregulation.
It cited his 2022 remarks at the Lagos Business School, where he described the petrol subsidy system as fraudulent and pledged to complete its removal.
The council also referenced Atiku’s August 25, 2026 statement, in which he said, “I will restore it!”
The APC-PCC said Atiku should explain how his current proposal would differ from the former subsidy regime and how it would address the problems associated with subsidy payments, including smuggling and fiscal losses.
The council contrasted the proposal with the Federal Government’s promotion of compressed natural gas and electric mass transit as alternatives for reducing transportation costs.
It said more than 120,000 vehicles had been converted to CNG, while CNG and electric buses in several states had reduced transport fares.
The statement also cited President Bola Tinubu’s October 1 target for more Nigerians to begin experiencing measurable reductions in transportation costs through the National Affordable CNG Transit Programme.
The APC-PCC said any intervention in the downstream petroleum sector should be lawful, transparent, properly costed and capable of delivering measurable benefits to consumers.
It called on Atiku to publish a detailed policy document and provide an independent legal and fiscal analysis of his proposal.