I’m Restoring Subsidy to Cut Fuel, Transport Costs – Atiku

Former Vice-President Atiku Abubakar has explained that his proposed return of fuel subsidy is intended to support local refining and reduce petrol prices, rather than subsidise imported petroleum products.

Atiku made the clarification in a series of posts on his X account on Saturday, describing the proposed policy as a production subsidy focused on reducing the cost of refining petrol in Nigeria.

He explained that the government would support crude oil processed by domestic refineries so they could produce petrol at lower costs and pass the savings on to consumers.

Atiku used local shoemaking as an example to explain the difference between supporting domestic production and subsidising imports. He said the government could either spend public funds to reduce the price of imported shoes or support shoemakers in Aba to lower their production costs, create employment and make their products more affordable.

He said he preferred the approach of supporting local producers and intended to apply the same principle to the petroleum sector.

According to the former Vice-President, government assistance to domestic refineries would help lower production costs and make petrol cheaper for Nigerians.

He said the proposal was not limited to reducing the pump price of petrol but was also designed to address the wider cost-of-living pressures affecting households and businesses.

Atiku said cheaper fuel could bring down transportation expenses, reduce the cost of moving food from farms to markets and lower energy expenses for small businesses and other operators.

He said the policy was aimed at leaving Nigerians with more disposable income by reducing the amount households and businesses spend on fuel and transportation while easing pressure on food prices.

The former Vice-President also responded to a prayer from one of his followers, urging Nigerians to help explain the proposed production subsidy and its possible benefits to women and families.

He said lower fuel and transport costs could make it easier for women to operate small businesses while also helping to reduce the prices of food and other household necessities.

Atiku maintained that the central objective of the policy was to support domestic refining, create jobs within Nigeria, reduce the cost of locally produced fuel and make everyday living more affordable for Nigerian families.