Nigeria's subsidy debate: Atiku's proposal for domestic refining challenges Tinubu's economic strategy

If elected president in 2027, Atiku's administration would provide crude at preferential prices to qualifying local refineries, aiming to produce cheaper petroleum for Nigerian consumers and strengthen domestic refining capacity. This approach contrasts with the current administration's subsidy removal in 2023, which led to increased living costs for Nigerians. The article highlights that while the pain of subsidy removal was immediate, the benefits of domestic refining, such as price reductions from the Dangote Refinery, have been partial and not fully passed on to consumers.

It also scrutinizes the Tinubu administration's use of funds generated from subsidy savings, noting that out of N20.4tn in incremental resources between June 2023 and December 2025, over 90% went to wages, allowances, and external debt servicing, with only a small fraction allocated to social welfare and education. The author argues that the government needs to demonstrate tangible productive investments from subsidy reforms, rather than relying on increased revenue distribution, to justify the sacrifices made by Nigerians. The piece emphasizes that the subsidy debate extends beyond petrol to broader industrial policy, human capital development, and the nation's economic future, urging a focus on value addition and