Fuel price subsidy: Tinubu’s presidency turned Dangote model into campaign strategy – Atiku

Former Vice President Atiku Abubakar has accused President Bola Ahmed Tinubu of turning Dangote's business model into a campaign strategy. In a statement issued by his spokesperson, Phrank Shaibu, Atiku said that Dangote Refinery had a legitimate concern about being forced to absorb losses created by government-imposed fuel prices.

However, Atiku claimed that the Presidency was being dishonest by presenting this as the essence of its plan. He explained that a refinery investing billions of dollars cannot be forced to sell fuel indefinitely at a loss, which would be economically destructive and unfair to private investors.

Atiku proposed a production subsidy model instead of an import subsidy model. The distinction is clear: import subsidy supports petrol refined abroad and brought into Nigeria, while production subsidy supports crude refined in Nigeria, making fuel cheaper for Nigerians. He likened the situation to rice, where the government can either make imported rice cheaper or help Nigerian farmers reduce the cost of producing rice at home.

The latter option would lower prices, create jobs, and strengthen local businesses while keeping economic activity within Nigeria. Atiku stated that the subsidy would follow the barrel refined in Nigeria, benefiting local production rather than foreign refineries, importers, or middlemen. This stance contrasts with the opposition from Tinubu's presidential candidate, Peter Obi.