The African Democratic Congress (ADC) pushed back against the Presidency’s claim that Atiku Abubakar’s proposal to lower petrol to N600 per litre is a return to fuel subsidy.
In a statement, the party described the proposal as a controlled production incentive aimed at domestic refineries, with the goal of reducing petrol costs while boosting local refining capacity.
ADC National Publicity Secretary Bolaji Abdullahi responded directly to the Presidency’s criticism, questioning the basis of its analysis.
“The Presidency has based its argument on a projected N19.1 trillion cost without properly considering how Atiku’s proposal is structured or the wider economic benefits of cheaper fuel produced locally,” Abdullahi said.
He added, “We are at a loss how the presidency conjured up this phantom figure. But we do not agree with it.”
Abdullahi explained that the plan would include a fiscal limit and mechanisms for tracking crude oil from refinery intake through to finished petroleum products.
The party argued that the Presidency’s criticism targeted the old subsidy system rather than Atiku’s proposed controlled subsidy plan, which it said would replace that system.
The ADC also raised questions about the government’s approach to incentives, noting that it supports measures for oil producers while rejecting initiatives aimed at easing the burden of high fuel prices on Nigerians.
Abdullahi pointed to offshore oil production incentives that can reach $11.50 per barrel, asking why a similar, controlled incentive for domestic refineries should be considered unacceptable.
“If Nigeria can provide a production-linked fiscal incentive of up to $11.50 per barrel to stimulate offshore oil production, why is a carefully controlled crude-input incentive for domestic refineries dismissed as economic madness when its objective is to make fuel cheaper for Nigerians and build domestic refining capacity?” he asked.
The ADC further argued that the cost of maintaining high petrol prices should factor into any assessment of Atiku’s proposal, saying expensive fuel has contributed to higher transportation costs, food prices, production expenses and the wider cost-of-living crisis.
The party maintained that its proposal would be capped, audited and traceable, while potentially reducing petroleum imports, saving foreign exchange and supporting domestic refining.
Source: Latest News In Nigeria, Nigeria News Today, Your Online Nigerian Newspaper