Atiku unveils local refinery subsidy plan, promises lower petrol prices

African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has pledged to introduce a production subsidy for petroleum products refined locally if elected president in the 2027 general elections.

He made pledge on Friday during a world press conference at his residence in Abuja, outlining what he described as a new approach to fuel subsidy aimed at supporting domestic refining rather than subsidising imported petrol.

According to the former Vice President, the policy would take effect from May 29, 2027, if he wins the presidential election.

“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.

He stressed that the proposed arrangement would be fundamentally different from the previous petrol subsidy system, under which government funds were used to reduce the cost of imported petroleum products.

“Our production subsidy will work the same way: government support must bring prices down. Only products confirmed to be refined in Nigeria will qualify,” he said.

“Imported products will not. The programme will have a fixed spending limit, National Assembly approval and independent audits.”

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Atiku’s latest proposal follows his renewed intervention in Nigeria’s fuel subsidy debate in August, when he said he would restore subsidy if elected.

He subsequently clarified that his proposal was not a return to the former import-subsidy regime, but a targeted intervention designed to support domestic production.

The ADC candidate’s latest position places domestic refining at the centre of his proposed petroleum policy.

The party has said the objective is to enable Nigerian refineries to produce petrol at lower costs, with the benefit passed on to consumers.

His proposal comes amid renewed increases in petrol prices across the country. Recent market checks showed petrol selling at about N1,400 to N1,450 per litre in several locations, including Abuja, while some outlets in Lagos were also selling around N1,400 per litre.

The latest price increases followed an N85 per litre increase in the gantry price of petrol by Dangote Petroleum Refinery, from N1,265 to N1,350, amid higher international crude oil prices and increased costs across the petroleum supply chain.

Atiku has argued that lower domestic fuel costs could have wider effects on the economy by reducing transportation and logistics expenses and easing operating costs for households and small businesses.

However, the renewed subsidy debate has also attracted criticism. The Centre for the Promotion of Private Enterprise has argued against returning to a broad-based fuel subsidy, warning about the potential fiscal implications and instead calling for targeted interventions in areas such as transportation, energy and food security.

Atiku’s proposed model would therefore hinge on government support for qualifying domestic refineries, a spending ceiling, legislative approval and independent auditing, according to his stated plan.

The proposal is expected to remain a major economic issue ahead of the 2027 presidential election, particularly as Nigerians continue to contend with elevated fuel, transportation and household costs.