Atiku Unveils Production-Based Fuel Subsidy Plan, Vows To Track Every Barrel
21th August, 2026 | News
Atiku Proposes Capped Subsidies for Nigerian Refineries, Promises Lower Fuel Prices
Former Vice President and African Democratic Congress (ADC) presidential candidate Atiku Abubakar has unveiled a proposed petroleum subsidy model that would redirect government support from fuel imports to domestic refining.
Under his proposed Atiku Economic Recovery Plan (AERP) 2027, qualifying Nigerian refineries would receive crude oil at preferential prices, but only under strict conditions tied to verified production, efficiency, transparency and domestic supply.
Atiku said the proposal would not revive Nigeria’s former open-ended fuel subsidy system. Instead, subsidies would be capped, included in the national budget and linked directly to measurable benefits for consumers.
He proposed that refineries receiving discounted crude must refine it domestically and supply an agreed volume of petroleum products to the Nigerian market at prices reflecting the benefit of the crude discount. Refineries that divert subsidised crude or products, manipulate production records or fail to meet their obligations could lose eligibility and face sanctions.
The former vice president also called for independent monitoring of crude allocations, refinery intake, production, inventories and domestic deliveries to ensure that every subsidised barrel can be traced and accounted for.
Subsidy Would Have a Fiscal Ceiling
Atiku said the programme would operate under a predetermined annual fiscal ceiling approved through the federal budget. He argued that this would prevent unexpected subsidy liabilities and allow Nigerians and the National Assembly to know the government’s maximum financial exposure.
He also proposed that the subsidy should have a statutory sunset clause and be gradually reduced as domestic refining capacity, efficiency and competition increase.
According to Atiku, the ultimate goal would be to build a strong domestic refining industry that would eventually operate without government subsidy.
Atiku Questions Tinubu’s Subsidy Policy
Atiku also criticised President Bola Tinubu’s handling of fuel subsidy removal, arguing that Nigerians deserve greater transparency over petroleum-related expenses recorded after the government declared that the subsidy had ended.
He cited NNPC Limited’s reported Energy Security Expenses of about N4.84 trillion in 2023 and N7.13 trillion in 2024, and called for clarification on what the expenditures covered and whether they included pricing differentials, under-recoveries or other petroleum supply costs.
Atiku argued that if government continued to absorb the difference between the economic cost of petroleum products and what consumers paid, Nigerians should be told how that differs economically from the subsidy system they were told had been abolished.
Raises Questions Over ₦30 Trillion in Federation Revenues
The ADC candidate also raised questions over approximately ₦30 trillion in Federation revenues, deductions, savings, transfers and related classifications that he said require a detailed public reconciliation.
He stressed that he was not alleging that the entire amount represented fuel subsidies or had been stolen, but called for government records to be made public and properly reconciled.
Atiku said an ADC administration would review previous subsidy transactions and pursue prosecution and asset recovery where investigations establish that public funds were fraudulently obtained or diverted.
He described his proposed approach as one that would target, cap, budget, track and audit subsidies, while ensuring that Nigerians receive measurable benefits and gradually reducing government support as domestic refining expands.