Atiku accuses Tinubu of favouring oil companies with tax incentives amid rising petrol prices

Former Vice-President Atiku Abubakar has accused the Federal Government of granting tax incentives to oil companies while Nigerians endure high petrol prices and a worsening cost of living. Atiku, running as the presidential candidate for the African Democratic Congress (ADC), made the claim in a statement released on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu.

He argued that President Bola Tinubu's removal of the petrol subsidy contradicted the government's ongoing use of tax credits, concessions, and other benefits to support petroleum investors. Atiku claimed that the government's offshore oil and gas incentives enable eligible projects to receive production tax credits ranging from $3 to $4.50 per barrel, with additional incentives potentially increasing total benefits to $11.50 per barrel in certain cases.

He questioned the government's assertion that the petrol subsidy had been completely eliminated, citing NNPC Limited's audited accounts showing energy-security expenses of around N4.84 trillion in 2023 and N7.13 trillion in 2024. Atiku argued that the subsidy had simply been redirected to cover the gap between petrol's market price and the government's selling price.

He proposed a targeted and capped intervention instead of reinstating the previous subsidy system, which he described as opaque and lacking proper budgeting. Atiku emphasized the need for greater transparency in tax credits, remissions, and incentives given to petroleum sector companies, including information on beneficiaries, revenue allocation, and investments made in return.

He called for fair and transparent access to similar incentives for Nigerian investors and stressed that economic reforms should be evaluated based on their impact on people's living standards rather than the extent of public hardship they endure.