The Special Adviser to President Bola Tinubu on Media and Public Communication, Sunday Dare, has criticised the presidential candidate of the African Democratic Congress, Atiku Abubakar, over his proposal to subsidise crude oil supplied to local refineries.
Dare argued that selling federation crude to local refiners at preferential prices would create fiscal and market distortions, reduce government revenue and potentially undermine smaller indigenous refineries.
In a post on his X handle on Wednesday, the presidential aide said the policy would create an “immediate fiscal hole” in the Federation Account, reducing funds available to the federal, state and local governments.
He also warned that preferential crude allocations could create artificial monopolies and violate the deregulatory principles of the Petroleum Industry Act.
Dare further cautioned that subsidised crude could widen the price gap between Nigeria and neighbouring West African countries, thereby encouraging fuel smuggling and cross-border arbitrage.
His comments followed Atiku’s renewed pledge to restore petrol subsidy if elected president in 2027.
Atiku had earlier clarified that his position remained unchanged after one of his media aides, Paul Ibe, suggested that the proposed subsidy would eventually be phased out as the economy improved.
Ibe had explained that Atiku’s plan would involve supplying crude to local refiners at discounted prices, allowing them to produce fuel and diesel more cheaply and provide temporary relief to consumers.
Atiku, however, maintained that Nigeria had sufficient resources to support the welfare of its citizens and reiterated his commitment to restoring the subsidy.
The renewed disagreement has further intensified the debate over petrol subsidy removal, which President Tinubu announced at his inauguration on May 29, 2023.
While the Tinubu administration has defended the policy as necessary to strengthen public finances, Atiku has continued to argue that the removal has worsened the cost of living for Nigerians.