Subsidy: Atiku showing desperation for power – Onanuga

The Presidency has criticized former Vice President Atiku Abubakar for his recent proposal to restore the fuel subsidy, accusing him of desperation for power. Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated that Atiku lacks understanding of the current economic dynamics and criticized his suggestion to "restore the much-abused, wasteful, pillaged, corruption-ridden fuel subsidy regime, which the Petroleum Industry Act made illegal from the end of June, 2023."

The Presidency noted that Atiku, who previously believed in eliminating the subsidy regime, has "now opportunistically recanted the major plank of his economic doctrine and turned a renegade." They argued that Atiku's proposal, made five months to the election, appears opportunistic and does not make fiscal sense, as it is retrogressive and against the people's genuine interest.

Onanuga emphasized that Nigerians deserve to understand the implications of restoring the subsidy, such as how it would be funded and whether it aligns with the petroleum sector's legal and structural changes. They pointed out that the subsidy, which was essentially a massive discount on fuel prices, led to under-recovery of costs and massive losses for the government, with trillions of Naira still owed in subsidy costs.

The statement clarified that the subsidy removal was part of Nigeria's petroleum-sector reforms and highlighted the significant shift in the country's petroleum landscape, with the emergence of substantial domestic refining capacity through the Dangote Refinery. The Presidency argued that Atiku's proposal risks reversing this progress and causing financial strain for smaller local refineries, potentially leading to job losses and a loss of foreign exchange.

They stressed that the subsidy debate should be based on the realities of today's market, asking critical questions about who would pay for the restored subsidy and the potential impact on pump prices. The Presidency concluded that political promises must be backed by fiscal arithmetic, urging Atiku to provide specific answers to these questions.