The Presidency has criticised the proposal by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, to reverse the removal of petrol subsidy.
The former vice president has said his proposed policy would include selling crude oil to local refineries at preferential prices, arguing that the move would help reduce the rising cost of transportation and other essential goods.
Atiku said reversing the subsidy removal would help ease the economic burden on Nigerians by reducing the cost of fuel and transportation.
He said he would seek to break what he described as a “wretched chain” that has characterised Nigeria’s economic experience under President Bola Tinubu.
Responding to Atiku’s position, President Bola Tinubu’s spokesman, Sunday Dare, argued that selling crude oil from the federation at below-market prices would create a shortfall in government revenue.
According to Dare, reduced crude revenue could affect allocations to the federal, state and local governments, with possible implications for funding critical sectors.
Dare also warned that maintaining a significant price difference between petrol in Nigeria and neighbouring West African countries could encourage cross-border fuel smuggling.
He argued that preferential crude pricing could distort the domestic market and recreate some of the challenges associated with the former subsidy regime.
The exchange between Atiku and the Presidency has renewed debate over the economic consequences of petrol subsidy removal and the best approach to addressing the rising cost of living.
While Atiku says restoring a targeted subsidy would ease pressure on households and businesses, the Tinubu administration maintains that such a policy could undermine government revenue and create new economic distortions.
