Atiku: Production subsidy will boost local oil production, put money back in Nigerians’ pockets

Former Vice President and African Democratic Congress (ADC) presidential candidate for 2027, Atiku Abubakar, has criticised President Bola Tinubu’s economic policies, accusing the administration of worsening the cost-of-living crisis and weakening the purchasing power of Nigerian households and businesses.

Atiku said Nigerians were facing rising costs of petrol, food, transportation and basic goods, while many businesses were struggling because consumers had less money to spend.

In a statement issued on September 6 by his Senior Special Assistant on Public Communication, Phrank Shaibu, the ADC presidential candidate said the Federal Government could not rely solely on economic statistics while Nigerians continued to experience financial hardship.

Atiku particularly criticised the removal of the petrol subsidy, arguing that the policy had contributed to higher transportation and living costs.

He also rejected criticism of his proposal for a production subsidy, saying the initiative was designed to support domestic production and refining rather than return to the previous system of subsidising imported petrol.

“This is why my Production Subsidy is about putting money back into people’s pockets. Support what we produce and refine here, increase supply, monitor the price and make sure Nigerians feel the benefit at the pump,” Atiku said.

According to the former vice president, the proposed intervention would focus government support on Nigerian oil production and domestic refineries, with the broader objective of increasing supply, strengthening the petroleum industry and reducing pressure on consumers.

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Atiku said the position of the Crude Oil Refinery Owners Association of Nigeria (CORAN) in support of stronger domestic refining further reinforces his argument for targeted government intervention.

He also cited the policies of US President Donald Trump as an example of how government support could be used to strengthen strategic domestic energy production.

Atiku argued that Nigeria should similarly support its local refining industry instead of relying heavily on imported petroleum products.

However, his reference to Trump was a comparison between the two approaches and should not be interpreted as a direct endorsement by the US president of Atiku’s Nigerian policy.

Atiku said the cost-of-living crisis had become increasingly difficult for Nigerians, accusing the Tinubu administration of making essential goods and services significantly more expensive.

“Tinubu did not inherit this cost-of-living crisis from Nigerians. His policies created and deepened it,” Atiku said.

He cited increases in the prices of fertiliser, petrol and cement, as well as changes in the naira-to-dollar exchange rate, as examples of the economic pressures facing Nigerians.

Atiku said fertiliser had risen from about N9,000 to N50,000, while petrol had increased from approximately N199 to around N1,400 per litre. He also cited an increase in cement prices from roughly N4,000 to about N13,500.

He further pointed to the depreciation of the Nigerian naira against the US dollar as another factor affecting businesses and household purchasing power.

Atiku argued that the consequences of these increases extended beyond individual consumers, affecting small businesses that must cope with higher transportation, electricity and restocking expenses.

He illustrated his argument with the example of a frozen-food seller in Kubwa, Abuja, who, according to him, now spends more to transport goods, power freezers and purchase new stock while customers increasingly struggle to afford the products.

The situation, Atiku said, could eventually affect the entire supply chain as retailers struggle to restock, suppliers wait for payments and customers reduce their purchases.

The ADC candidate also referred to reports indicating that significant amounts of short-term assets belonging to some major Nigerian companies were tied up in unpaid customer bills.

He said the development reflected the weakening purchasing power of consumers, arguing that businesses could make sales on paper but still face financial difficulties when customers were unable to pay.

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Atiku therefore challenged the Federal Government to look beyond headline economic indicators and assess whether Nigerians were actually experiencing improvements in their daily lives.

“Nigerians know the prices they meet every day,” he said, arguing that households were more concerned about the cost of food, fuel, transport and other necessities than official economic statistics.

He also questioned the availability of meaningful relief for Nigerians amid rising living costs, citing concerns over electricity, security, food prices and transportation.

Atiku said his production subsidy proposal was intended to change the way government intervention operates in Nigeria’s petroleum sector.

Rather than subsidising imported petrol, he said the policy would support domestic oil production and refining, with intervention linked to measurable production and supply.

The objective, he said, would be to increase domestic petroleum output, strengthen local refineries, create jobs and reduce the cost of petroleum products for consumers.

Atiku also questioned why government intervention should be considered poor economic policy when the intended beneficiaries were Nigerian consumers and producers.

“Why does intervention suddenly become bad economics when ordinary Nigerians are meant to benefit?” he asked.

The former vice president argued that Nigeria should adopt policies that support strategic domestic industries while ensuring that the benefits reach ordinary citizens.

He said increased local refining would reduce dependence on imported petroleum products and help Nigeria retain more value from its oil resources.

The renewed debate over fuel subsidy, domestic refining and the cost of living is likely to become an important issue ahead of the 2027 presidential election.

Atiku is seeking to distinguish his production-focused proposal from the petrol subsidy regime that was removed by the Tinubu administration.

He said his economic approach would prioritise domestic production, local refining, job creation and lower living costs, rather than policies that place additional pressure on household incomes.

“The choice before Nigeria is therefore clear: continue with an economy that takes more from the people, or build one that puts money back in their pockets,” Atiku said.

He urged Nigerians to support policies that would increase domestic production and make essential goods and services more affordable.

“Support production. Refine in Nigeria. Create Nigerian jobs. Lower the cost of living,” he said.

Atiku maintained that Nigeria must produce more locally while ensuring that ordinary Nigerians pay less for essential goods and have enough income left to support their families.

The statement comes as political parties and presidential aspirants begin shaping their economic messages ahead of the 2027 general election, with fuel prices, purchasing power, domestic refining and the broader cost of living expected to remain central issues.

Atiku: Production subsidy will boost local oil production, put money back in Nigerians’ pockets