Subsidy Debate: Atiku Tackles Tinubu, Says Dangote Refinery’s Position Aligns With His Proposal 

Former Vice President Atiku Abubakar has accused the Tinubu Presidency of deliberately distorting concerns raised by Dangote Refinery in a desperate attempt to discredit his production subsidy proposal.

He said the refinery’s warning against arbitrary pump-price controls actually exposes the dishonesty of the government’s argument.

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said Dangote Refinery was right to insist that a private refinery cannot be forced to carry losses created by government-imposed prices, but said the Presidency was being deliberately dishonest by pretending that this was what his plan proposed.

“Dangote raised a legitimate business concern. The Presidency turned it into a campaign of fear.

“A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses. That would be reckless, economically destructive and unfair to any private investor.

“But that is precisely why our proposal is different.

“We are restoring subsidy through a production subsidy model, not an import subsidy model.

“The difference is simple enough for every Nigerian to understand. Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria. Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less.

“Think of it like rice. If government wants rice to become cheaper, it has two choices: spend money making imported rice cheaper, or help Nigerian farmers reduce the cost of producing rice at home. The second option lowers prices while also creating jobs, strengthening local businesses and keeping economic activity in Nigeria.

“That is exactly what we are proposing for fuel.

*We are restoring subsidy, but moving it from importation to production.*

“The subsidy follows the barrel refined in Nigeria.”

Atiku said his proposal would reduce the cost of crude feedstock supplied to qualifying domestic refineries through a transparent, capped and independently verified mechanism.

“If the crude entering a refinery becomes cheaper, the cost of producing petrol should also come down. That reduction should then reach the average Nigerian while preserving legitimate refining costs and a reasonable commercial margin.

“There is a clear difference between helping a producer reduce costs and forcing that producer to sell at a loss.

“The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians.”

Atiku said the government’s attempt to equate every subsidy with import dependence was a brazen, dishonest and crude distortion designed to mislead Nigerians of the policy debate.

“Under our plan, support will be tied strictly to crude refined in Nigeria. Nigerian refineries will benefit. Nigerian workers will benefit. Nigerian businesses will benefit. Nigerian consumers will benefit.

“If you do not refine in Nigeria, you do not qualify.