Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has unveiled a proposed petroleum subsidy framework he says will reduce energy costs, strengthen local refining and ensure greater transparency in the management of public funds.
Under his Atiku Economic Recovery Plan (AERP) 2027, Atiku said an administration led by him would replace the former import-based subsidy system with a targeted, capped, budgeted and independently audited production subsidy.
The proposal would allow qualifying Nigerian refineries to access crude oil at a preferential price, provided they meet strict conditions on production, efficiency, transparency and domestic supply.
Atiku said the subsidy would “follow the barrel,” meaning every subsidised quantity of crude would be tracked from allocation to refining and eventual delivery to Nigerian consumers.
He explained that refinery operators would only benefit from the programme if they could demonstrate that the advantage of cheaper crude was passed on to consumers through verifiable domestic petroleum supplies.
The former vice president also proposed strict measures against diversion, manipulation of production records and other forms of abuse. Refineries found violating the conditions would lose access to the subsidy, refund the benefits received and face applicable sanctions.
According to Atiku, the programme would operate within a predetermined annual fiscal limit approved by the National Assembly. He said Nigerians would know the maximum financial exposure, while independent auditors would monitor crude allocations, refinery output and domestic deliveries.
He added that the subsidy would be temporary and subject to periodic review, with support gradually reduced as domestic refining capacity, efficiency and competition improve.
Atiku said the ultimate goal was not to create a permanent subsidy regime but to use limited government support to build a stronger domestic refining industry capable of operating without subsidies in the long term.
He also criticised the handling of the subsidy removal under President Bola Ahmed Tinubu, questioning petroleum-related expenses recorded in government accounts and calling for greater transparency in Federation revenues and deductions.
Atiku pledged that any previous subsidy transactions found through due process to involve fraud or diversion of public funds would be subjected to legal scrutiny and possible asset recovery.
He said his proposed model would seek to lower transportation and energy costs, support businesses, moderate inflation and improve purchasing power while strengthening Nigeria’s refining capacity.
