Nigeria Presidency rejects Atiku Abubakar's fuel subsidy proposal

The Nigerian Presidency has dismissed a fuel subsidy proposal by former Vice President Atiku Abubakar, labeling it a ‘dangerous mathematical fantasy’ that lacks sufficient unencumbered crude oil volumes to be viable. The government argues that existing joint ventures and production sharing contracts leave less than 700,000 barrels per day available to the state, making a blanket production subsidy impossible.

This debate follows the government's introduction of a 30-day petrol price discount at NNPC Retail stations and a price-modulation mechanism. Finance Minister Taiwo Oyedele clarified that the proposed N1,350 per litre ceiling is a landing cost cap designed to reduce volatility rather than a return to the old subsidy regime. Atiku has criticized these measures as ‘panic-driven gimmicks’ and questioned the financial transparency of NNPC Limited bearing the cost of the discount.

In response to rising living costs, the administration is also promoting compressed natural gas (CNG) and electric-powered transportation to lower commuter fares. Meanwhile, petroleum marketers from PETROAN and IPMAN have called on the government to extend the current petrol price discounts to independent and private retail stations to ensure wider relief for the population.