Presidency criticizes Atiku Abubakar's proposal to restore petrol subsidy
The Presidency has criticized former Vice President Atiku Abubakar's proposal to restore petrol subsidy if elected president, calling the policy "retrogressive" and fiscally unsustainable. Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated that Abubakar's current stance departs from his previous advocacy for subsidy removal. Onanuga described the subsidy regime as "much-abused, wasteful, pillaged, corruption-ridden" and noted it was made illegal from the end of June 2023 by the Petroleum Industry Act. While acknowledging Abubakar's right to propose alternative policies, Onanuga emphasized that Nigerians deserve to understand how the proposed restoration would be funded and its compatibility with current petroleum sector changes. He also highlighted that the subsidy was a discount offered by the Nigerian National Petroleum Limited to the government, which is still owed trillions of Naira. Onanuga argued that restoring the subsidy would reverse local production, potentially leading to bankruptcy for smaller local refineries and job losses, contrasting it with the current policy that has enabled Nigeria to export refined products. He questioned who would bear the cost if the subsidy were restored, noting that it would ultimately impact public finances through reduced funds for infrastructure and social services, increased borrowing, or higher public debt.
