Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has outlined a plan to reduce petrol prices by introducing a production subsidy for petroleum products refined locally if elected president in 2027.
Atiku announced the proposal during a press conference in Abuja, saying the policy would focus exclusively on petroleum products refined in Nigeria and sold to Nigerian consumers. Imported petroleum products, he said, would not qualify for the proposed intervention.
“If elected, from May 29, 2027, I will introduce a transparent production subsidy for petroleum products refined in Nigeria and sold to Nigerians,” Atiku said.
According to the ADC candidate, the programme would operate within a fixed spending limit and require approval from the National Assembly, while independent audits would be used to promote transparency and accountability. He said the approach was intended to lower production costs for domestic refineries and ultimately reduce petrol prices.
Atiku has distinguished the proposal from the former system that subsidised imported petrol. Under his plan, government support would be directed toward local refining, with the stated objectives of encouraging domestic production, creating jobs and improving consumers’ purchasing power.
The proposal comes amid continued debate over petrol prices and the economic consequences of subsidy removal. President Bola Tinubu ended the petrol subsidy regime after assuming office in May 2023, a decision the Federal Government has defended as necessary to reduce fiscal pressures and redirect resources.
Atiku’s proposal has also attracted differing reactions, with supporters highlighting the potential benefits of cheaper domestic refining, while critics have questioned the fiscal implications and whether a production subsidy could avoid problems associated with the previous subsidy regime.
The debate is likely to remain a major economic issue ahead of the 2027 presidential election, particularly as domestic refining capacity expands and petrol prices continue to affect transportation, food costs and household spending.
