NO GOING BACK: Presidency Blasts Atiku Over Plan To Restore Fuel Subsidy, Says Proposal Retrogressive, Ignorant

The Presidency has ruled out any return to the petrol subsidy regime, describing former Vice President Atiku Abubakar’s promise to restore it as retrogressive, fiscally unsustainable and a product of “desperation to win the presidency.”

President Bola Ahmed Tinubu’s reaction was conveyed through his spokesman, Mr Bayo Onanuga.

According to Daily Nigerian l, Onanuga said Nigeria’s petroleum landscape had changed fundamentally since President Tinubu announced the removal of petrol subsidy on May 29, 2023.

The decision saw pump price jump from below N200 to above N1,000, leading to increases in transportation, food and other living costs.

Mr Atiku, a major contender for the 2027 presidency and presidential candidate of the African Democratic Congress, ADC, had promised to restore petrol subsidy if elected president.

Though Atiku supported subsidy removal during the 2023 campaigns, he has now made restoration a major plank of his 2027 campaign, alleging that funds generated from the removal have not translated to food on the table of Nigerians.

Tinubu, in his response, said Atiku was ignorant of governance and economy.

The President spoke when he received Governor Ademola Adeleke of Osun State at the State House recently.

He said Atiku’s plan to reintroduce petrol subsidy was a demonstration of his high level of ignorance in governance and economy.

Subsidy Removal Generated N15.8 Trillion — Finance Minister

Corroborating the Presidency’s stance, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the removal of petrol subsidy had generated N15.8 trillion in resources for the federation between June 2023 and December 2025.

According to Oyedele, N5.4 trillion accrued to the Federal Government, while N10.4 trillion was shared among states and local governments.

Atiku, however, insisted his proposal is not a return to the opaque subsidy regime of the past, but a controlled mechanism to support Nigerian refineries while ensuring cheaper crude feedstock benefits reach consumers.

He said every barrel of crude allocated under his proposal will be targeted and tracked to ensure Nigerians benefit.

Experts Divided, Nigerians Lament Hardship

A financial expert and President of the Capital Market Academics of Nigeria, CMAN, Prof. Uche Uwaleke, said the debate should go beyond cheaper petrol and focus on the most economically sustainable use of scarce public resources.

He said the old subsidy regime had become an enormous burden on public finances while creating opportunities for arbitrage, smuggling and rent-seeking.

Prof. Ken Ife, a global financial analyst, also faulted Atiku’s rhetoric, saying Nigeria cannot solve its fuel crisis through artificial price-slashing.

“You do not subsidise consumption. What you subsidise is production. You cannot borrow money to pay for a subsidy. That is unlawful under the Fiscal Responsibility Act,” Ife said.

But some Nigerians say hardship has worsened.

A civil servant, Ibrahim Abbas, said the only thing civil servants have experienced since subsidy removal is economic hardship and depletion of Naira’s purchasing power, making Atiku’s proposal attractive.

A retired civil servant, Sule Aliu, said the economy has been particularly harsh on retirees since 2023.

NAN