Atiku accuses the President of adopting his targeted fuel support proposal without a lasting plan to lower petrol prices.
Former Vice-President Atiku Abubakar has challenged the federal government to explain what will happen after the expiration of its 30-day petrol price discount, accusing President Bola Tinubu of adopting his proposed petroleum pricing policy but stripping it of the measures he said were necessary to deliver lasting relief to Nigerians.
Atiku raised the question while inaugurating the African Democratic Congress (ADC) Presidential Campaign Council ahead of the 2027 general election, arguing that a temporary reduction in petrol prices would not address the persistent pressure on households, transport operators and businesses. He said the President embraced his policy prescription that the government once mocked.
The former vice-president insisted that his proposed production subsidy was designed as a lasting, targeted intervention to support locally refined petroleum products and lower fuel costs, unlike the government’s 30-day discount at Nigerian National Petroleum Company Limited (NNPC) retail outlets.
His criticism has added a political dimension to the debate over the government’s response to rising petrol prices, with the Minister of Aviation and Aerospace Development, Festus Keyamo, subsequently accusing Atiku of making verbal attacks on Tinubu because of political defeat.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the petrol price discount, maintaining that it is a commercial decision by NNPC Retail to temporarily surrender its profit margin rather than a return to the petroleum subsidy regime.
The price cushion initiative, which offers a N60-per-litre reduction by allowing NNPC Retail to forgo its retail profit margin, is intended to cushion households, commuters and commercial transport operators against rising petrol prices triggered by global oil market volatility amid tensions in the Middle East. However, the initiative has generated divergent reactions, with the government insisting that the measure is a commercial decision rather than a return to fuel subsidy, while industry operators have questioned its implementation framework and implications for competition.
Atiku, accused Tinubu of wrongly copying his petroleum pricing proposal after previously criticising the idea.
The former Vice President said: “Tinubu has had more than three years to improve our lives. What has he given us? A bag of food that costs more each time we go to the market. A journey to work that eats up our salaries. A business that cannot keep its lights on. A farm we may be too afraid to visit.
“This is the cruel record he wants Nigerians to applaud. I have heard the anger in your voices, and I share it. Across this country, people are ready to stand with us and demand better. I will stand with you until we make life affordable again.
“You have demanded painful sacrifices from the people while you, your family, and friends are junketing all over the place. You told Nigerians to be patient as the price of petrol has pushed up the price of almost everything else. But now that an election is approaching, you have suddenly discovered their pain.
“Nigerians did not need a press conference to tell them they were suffering. They have lived it for 1,229 days since you took office. They know who made their lives difficult, and they are ready to hold you to account and mark your script.
“Thursday, your government announced a 30-day discount on petrol at NNPC stations, with priority for public transport operators. You also proposed a measure to contain petrol prices. When I proposed targeted support to ease fuel costs, you called me ignorant of economic policy. Your government said it could not be done. Now, in a desperate and clumsy retreat, you have shamelessly embraced the principle you mocked. You owe me an apology. But more importantly, you owe Nigerians an answer: what happens on day 31?
Speaking further, Atiku said: “My production subsidy proposal is a lasting, targeted plan. Yours is a temporary palliative dressed up as a solution. Nigerians can see the difference between a leader who has done the work and a government scrambling for an election-season headline.
“Your 30-day discount is a sugar rush masquerading as economic policy: a fleeting taste of relief at the pump, followed by the same brutal crash when the month ends. Families cannot plan their meals around a temporary discount. Transporters cannot set stable fares on it. Businesses cannot invest or plan for the future on it. Nigerians need lasting relief through a well-designed production subsidy that supports local refining and lowers fuel costs – not a N50 sweetener with an expiry date.
“But I am glad you have finally acknowledged the failure of your approach. It is a pity you still seem to have learned nothing from it. I offered a plan because Nigerians’ welfare matters more to me than who gets the credit. You chose to mock it, then copied it badly.
“You created the hardship and now want a medal for announcing fake relief. This is Deception 101 – or, better still, yahoo-yahoo subsidy. For three and a half years, your government has driven up the cost of living.
“Now you offer a N50 petrol discount for 30 days and expect applause for returning a fraction of what Nigerians have lost? How can you make daily life unbearable for years and expect one month of token relief to wipe the record clean?
“Nigerians are neither foolish nor forgetful. They have lived with the consequences of your decisions, and they will judge you by them. Can’t you smell the coffee I am brewing? Nigerians can smell it. They know the difference between a government with a plan and a government buying time.
“Do not hide behind the word “discount.” You say public transport operators come first. Will fares fall? Who will enforce that? What about the farmer moving produce, the trader restocking a shop, the manufacturer running a generator, and the family paying for food? They all pay for fuel, even when they never fill a tank.
‘What you have announced is not relief. It is a late confession of failure on the eve of a general election. Do you think that millions of Nigerians, whom you have condemned to poverty and hardship for three and a half years, will applaud you for failing so abysmally? You have miscalculated. Nigerians are fed up with you.”
Atiku said the economy “has collapsed under your watch,” adding that, “by offering a 30-day relief package, you admit you have no idea how to fix it. That is why you summoned your gang of tax collectors for help. It is a sad spectacle. You have run out of time. Nigerians need leadership with the political will, administrative experience, and sound economic judgment to make life affordable again.”
“You still reach for the same old excuse. You blamed past administrations for the hardship your decisions have inflicted today. You are the President. The petrol price is your problem. The collapsing purchasing power is your problem. The shops closing under the weight of fuel and power costs are your problem. Take responsibility for the country you govern.
“My alternative is clear. Support petroleum products actually refined in Nigeria and sold to Nigerians. Cap the support. Put it in the budget. Audit it independently. Exclude imports. Show the public what it costs and what they save. Give families relief they can count on and give domestic producers a reason to produce more. That is the lesson you missed.
“Fuel is only one part of the damage. We must make food affordable, restore reliable power, put people to work and let businesses grow. We must secure the roads and farms. We must remove the obstacles that hold back young Nigerians with the talent to compete anywhere in the world. A speech about growth means nothing to a family that cannot afford dinner.”
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the petrol price discount, insisting that it is a commercial decision by NNPC Retail to temporarily surrender its profit margin rather than a return to the petroleum subsidy regime.
In a statement issued by the Ministry of Finance on Friday, Oyedele explained that a retail margin discount occurs when a marketer voluntarily reduces or temporarily relinquishes its profit margin to lower the price paid by consumers.
The price cushion initiative offers a N60-per-litre reduction by allowing NNPC Retail to forgo its retail profit margin. It is intended to cushion households, commuters and commercial transport operators against rising petrol prices triggered by global oil market volatility amid tensions in the Middle East.
Oyedele said the cost of the discount was being borne by NNPC Retail and that no public funds had been committed to the initiative.
“Every marketer adds a margin to the price it pays for the fuel it sells. A margin discount means the retailer chooses to take a smaller margin, or no margin at all for a period, and passes the saving to the customer. The cost of the discount is borne by the retailer alone,” the minister said.
He maintained that the arrangement differed from a subsidy, under which the government pays part of the price consumers would otherwise bear using public revenue.
According to him, NNPC Retail continues to purchase petrol from Dangote Refinery and other suppliers at prevailing market prices on commercial terms before applying its retail margin to determine pump prices.
Oyedele also argued that the reduction in earnings per litre could be offset by higher sales volumes as motorists patronised NNPC stations because of the lower prices.
Speaking further, Oyedele said: “We must not keep quiet and allow populism to move our country in the wrong direction. To answer your question, if Nigeria produces 1.8 million barrels of crude oil per day, that volume does not belong to the country alone. Under production-sharing contracts and joint ventures, the crude is shared among the parties involved, and the ratios vary. For illustration, let us assume a 45:55 ratio. A portion of the crude goes to the contractors, while another portion goes to the government.
“There is also the cost of production—the cost of extracting the crude oil from the ground. This is recovered through cost oil, which further reduces the volume available. Royalties must also be deducted before the parties can share the remaining profit oil. The point I am making is that, before the recent reforms, almost all the crude oil revenue available to Nigeria had been exhausted by the cost of the fuel subsidy.”
“Before President Tinubu introduced the reform in May 2023, the NNPC, which holds crude oil on behalf of the country, had less than 100,000 barrels of free crude left. When government revenues were exhausted, the government resorted to printing money, but that was still insufficient. We then began using future crude oil production to secure commitments and borrow money to subsidise current consumption.”
According to the minister, Nigeria was in an unsustainable situation as of May 2023, when the President introduced his subsidy removal reform.
Nigeria had less than 100,000 barrels of free crude available. What the government has achieved since then is the result of increased production, reduced oil theft and the renegotiation of some commitments that previously tied down crude oil. Many Nigerians will remember when Mr. Tony Elumelu, went on social media that the country was unable to account for much of the crude oil it produced because of theft. He later returned to say that the estimated level of theft had fallen to about five per cent. These developments reflect some of the efforts made by the current government.
“However, despite the increase in production and the reduction in oil theft, Nigeria still does not have up to 700,000 barrels of free crude oil available to service Dangote Refinery. Therefore, those suggesting that the government should simply offer crude oil at a discounted price based on the cost of production may not fully appreciate the technical and commercial realities involved.
“It is also important to understand that Nigerian crude is predominantly light and sweet. It may not be the most optimal feedstock for every refining requirement, and Dangote Refinery still needs to import some heavier crude grades. I do not want to go into the technicalities, but the reality is that Nigeria does not currently have up to 700,000 barrels of free crude oil available to supply any single buyer, including Dangote Refinery.
That is why the President introduced the naira-for-crude arrangement, which was intended to help provide greater stability for the refinery and the domestic market. The arrangement has helped, but the available volume is still insufficient to meet all the refinery’s requirements.
“As we ramp up production and free up more barrels from existing commitments, we should reach a point where Dangote Refinery can obtain the crude it requires and other refineries can also secure adequate supplies. Personally, I hope Nigeria will eventually reach a stage where all the crude oil it produces is refined domestically and only the surplus of refined petroleum products is exported.
“However, I cannot provide the exact volume of free crude currently available because I do not have that figure. What I can say is that it is below Dangote Refinery’s requirements. It is important to establish that fact: the refinery still imports crude oil, and Nigeria must continue to increase production and make more crude available to domestic refiners.”
