APC-PCC Challenges Atiku to Explain Legal, Fiscal Bases of His Subsidy Proposal

The All Progressives Congress (APC) Presidential Campaign Council (PCC) has challenged Atiku Abubakar, the presidential candidate of the African Democratic Congress (ADC), to explain the legal and fiscal bases of his proposed petrol subsidy. Atiku recently proposed a "production subsidy" for locally refined petrol, claiming it would lower pump prices. However, the APC PCC spokesman, Dele Alake, urged Atiku to address legal, fiscal, and practical concerns surrounding his proposal.

Alake pointed out that Section 205(1) of the Petroleum Industry Act 2021 states that unrestricted free-market conditions determine petroleum product prices. He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority does not fix pump prices or issue administrative price templates, except when statutory intervention conditions are met.

Therefore, Atiku must clarify whether refiners receiving his proposed subsidy would be required to sell petrol at a specific price. If yes, Alake asked Atiku to identify the legal framework and explain how the price condition would operate. If no, Atiku must explain how public support would guarantee lower prices at filling stations, as without an enforceable mechanism, refiners could benefit while consumers continue to pay market rates.

Moreover, Alake requested Atiku to disclose the cost of his proposal and how he would fund it. He added that Atiku’s earlier statement suggested the subsidy could involve preferentially priced crude for domestic refineries, which would reduce the value accruing to the federal, state, and local governments, exacerbating the fiscal crisis that led to many states being unable to pay salaries and pensions before President Tinubu's administration in 2023.