By Eshioromeh Sebastian
The Presidency has taken aim at Atiku Abubakar, describing his proposal to return to petrol subsidy as a dangerous step backwards that threatens to wipe out two years of economic recovery under the Tinubu administration.
In a strongly worded statement on Thursday, President Bola Tinubu’s spokesman, Bayo Onanuga, said the former Vice President’s proposal was not only economically reckless but also exposed a dangerous desperation for power that could lead him to say anything to get elected.
“This is a man who stood before Nigerians in 2023 and argued passionately for subsidy removal,” Onanuga said. “Now, with five months to the election, he has turned around to promise what he himself once described as a corrupt and wasteful system. That is not leadership. That is opportunism.”
The Presidency argued that Nigeria has moved too far forward to consider going back. Since the subsidy was scrapped in May 2023, the country has witnessed the emergence of the Dangote Refinery, which now meets over 80 percent of domestic petrol demand. Smaller refineries have also sprung up, creating jobs and saving the country billions of dollars previously spent on imports.
“Restoring subsidy would kill all of that,” Onanuga warned. “Why would any refinery produce fuel if they know government will sell imported fuel below cost? It makes no business sense. The jobs will disappear. The investors will leave. And we will be back to square one—importing everything with our scarce foreign exchange.”
The Presidency also took issue with Atiku’s claim that the government had accumulated a N30 trillion windfall from subsidy removal, describing the figure as “pure fantasy.”
“There is no such money sitting anywhere,” Onanuga said. “The subsidy was never cash. It was money NNPC was not collecting. The truth is that the government is still paying off debts incurred under the old subsidy regime. So when Atiku speaks of windfalls, he is either misinformed or deliberately misleading Nigerians.”
Turning to the numbers, the Presidency said any return to subsidy would come at an enormous cost. With petrol’s true economic price now hovering between N1,200 and N1,300 per litre, the government would have to absorb hundreds of billions of Naira annually just to keep pump prices artificially low.
“Who will pay for that?” Onanuga asked. “Will Atiku borrow more money? Will he cut funds for schools and hospitals? Will he reduce allocations to states and local governments? These are questions he must answer before he makes promises he cannot keep.”
Onanuga further noted that the states are now benefiting from the current arrangement, with the three tiers of government sharing a record N3 trillion from the Federation Account in July alone—funds that are being used to pay salaries and build infrastructure.
“The old subsidy regime did not help the poor. It helped smugglers and fraudsters. It enriched a few while the masses suffered. Nigerians are wise to that game now.”
In his defence, Atiku has insisted that his proposal is different from the old regime. He said he is advocating a “production subsidy” that would see domestic crude sold to local refineries at discounted rates, with strict conditions to ensure the savings reach consumers.
“The subsidy will follow the barrel,” Atiku said. “We will move from the opaque, unverifiable import subsidy to a transparent, capped production subsidy. This is not a return to the past. It is a smarter way forward.”
But the Presidency dismissed the distinction, arguing that any form of subsidy ultimately places a burden on public finances and distorts the market.
“It does not matter what name you give it,” Onanuga said. “Subsidy is subsidy. It will still cost money. It will still create opportunities for fraud. It will still discourage local production. Nigerians cannot afford to be fooled by new packaging of an old, failed idea.”
The clash has set the stage for a fierce policy debate in the lead-up to the 2027 election, with the subsidy question emerging as one of the defining issues of the campaign.
The Presidency concluded by urging Nigerians to demand concrete answers from any candidate making economic promises.
“Promises are cheap,” Onanuga said. “But the cost of bad policy is borne by the people for years. Nigerians deserve leaders who will tell them the truth, not leaders who will tell them what they want to hear just to win an election.”
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