Ogun APC Chair criticizes Atiku over subsidy plan

The Chairman of the Planning Committee for the 2027 APC Presidential and Governorship Campaign in Ogun State, Kayode Oladele, has slammed the fuel subsidy plan introduced by Alhaji Atiku Abubakar, the presidential candidate of the African Democratic Congress. He described Atiku's proposal as just a way to present an old policy with a new name.

Oladele, who is a former federal lawmaker, said in a statement on Sunday that Atiku's idea of a "capped, budgeted production subsidy" for petrol refined in Nigeria raises key questions. He believes these questions cannot be answered simply by changing the name from consumption subsidy to production subsidy.

Atiku, the former Vice President and the 2027 presidential candidate of the African Democratic Congress, stated that only petrol refined in Nigeria, including products from modular refineries, would qualify for the suggested subsidy. He also mentioned that imported petrol would not be part of this plan. Atiku promised that costs and payments would be made public and audited independently.

However, Oladele pointed out that the main question is not what Atiku calls the program, but who will pay for it and how much it would cost Nigerian taxpayers. He said, "A subsidy remains a subsidy. You may call it production subsidy, targeted subsidy, capped subsidy or give it any sophisticated economic description you like. Once the government is required to absorb part of the cost of petrol so that it can be sold below what the market would otherwise determine, public resources are being committed to make up the difference."

He asked, "What is the subsidy rate? What quantity of petrol will qualify? What is the annual expenditure ceiling? Where will the money come from? And what mechanism will guarantee that whatever benefit government gives to refiners will actually reach ordinary Nigerians at the filling stations?"

Oladele, who was once the acting Chairman of the Federal Character Commission, noted that similar questions were raised by the APC Presidential Campaign Council. They asked Atiku to reveal the proposed subsidy rate, spending ceiling, eligible volumes, funding sources, and safeguards against fraud.

He added that the campaign council also questioned how this subsidy plan would fit into Section 205(1) of the Petroleum Industry Act. This section sets market-based pricing for petroleum products.

Oladele explained, "The fundamental difference between President Bola Ahmed Tinubu’s approach and Atiku’s proposal is that the President is trying to restructure the energy and transportation economy rather than return to a system of government paying for fuel consumption."

He went on to say, "President Tinubu made the tough choice to tackle a subsidy system that had become a heavy burden on the public treasury. Such structural reforms come with challenges, and nobody should pretend otherwise."

Oladele asked Nigerians to think about Atiku's proposal. He said, "After all our experience with subsidy, is the solution really to create another subsidy program?"

He also criticized Atiku's comments on the Federal Government’s transportation projects. Oladele argued that Atiku was ignoring efforts to diversify Nigeria’s transportation energy sources, like Compressed Natural Gas and other alternatives to petrol.

He said, "Atiku wants Nigerians to think that the only real way to lower transportation costs is to have the government subsidize fuel."

Oladele pointed out, "President Tinubu is taking a different approach: expanding the country’s transportation energy options, growing CNG infrastructure, and gradually reducing reliance on petrol for commercial transport."

He stressed that there is a big difference between the two approaches. One keeps asking the government to cover part of the price of petrol, while the other aims to change the cost structure by creating alternatives.

Oladele mentioned that Atiku can propose a new economic plan, but Nigerians have the right to ask for clear details. He said, "It’s easy to promise cheaper petrol, food, electricity, and transportation during elections. The tough question is how to finance these promises without recreating the fiscal problems Nigeria has faced for years."

He believes the Tinubu government should be judged by real results. This includes whether its transportation initiatives benefit more Nigerians and actually lower commuting costs.

Oladele concluded by saying that the government must show results and the opposition must provide credible alternatives. He warned that simply renaming a subsidy and calling it a new economic idea does not answer the tough questions Nigeria faces. He said, "President Tinubu chose reform over delay. Atiku is suggesting the government should step in again with petrol subsidies. Nigerians need to carefully consider the effects of these different approaches."

He added, "The country has been down the subsidy path before. Before anyone asks Nigerians to go down that road again, even under a new name, they owe the people something more substantial than just campaign promises. They owe them the numbers."