Onanuga Challenges Atiku to Clarify His Petrol Subsidy Proposal
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, has challenged former Vice-President Atiku Abubakar to provide greater clarity on his proposal to reintroduce petrol subsidy, describing the former vice-president’s recent statements as contradictory and raising questions about the feasibility and cost of the policy.
In a statement, Onanuga said Nigerians had received different explanations within a short period regarding what an Atiku administration would do about petrol subsidy.
He noted that Atiku’s spokesperson, Paul Ibe, initially said the former vice-president would restore petrol subsidy if elected and later phase it out as a temporary measure to cushion economic pressures on Nigerians and businesses.
According to Onanuga, another senior aide, Phrank Shaibu, subsequently described Ibe’s explanation as an “unauthorised and misleading characterisation” of Atiku’s position. Shaibu reportedly said Atiku would instead maintain subsidy until domestic refining capacity expanded, fuel supply stabilised and market competition could deliver affordable prices.
Onanuga said Atiku later intervened personally, reaffirming that his position had not changed and that he would introduce what he described as a “targeted subsidy” if elected president.
The presidential aide argued that the conflicting explanations raised important questions about the policy, particularly regarding its financing, beneficiaries and eventual exit strategy.
“Nigerians deserve clarity, not policy by trial and error,” Onanuga said.
He also challenged the argument that petrol subsidy alone could resolve Nigeria’s cost-of-living pressures, noting that pump prices are influenced by several factors, including international crude oil prices, exchange rates, refining costs, transportation and distribution expenses.
According to him, while fuel and transportation costs contribute to food prices, other factors such as agricultural productivity, insecurity, logistics, storage, flooding, input costs and supply constraints also play significant roles.
Onanuga therefore urged Atiku to explain exactly what he means by “targeted subsidy”, including its projected cost, beneficiaries, funding mechanism and the economic conditions that would determine when the programme would end.
Onanuga Questions Scope of Proposed Subsidy
The presidential aide further questioned how Atiku’s proposed policy would account for the various products obtained from a barrel of crude oil.
He argued that petrol represents only part of the products produced through crude oil refining, with other outputs including diesel, aviation fuel, kerosene, liquefied petroleum gases, lubricants, asphalt, petrochemical feedstocks and other products.
Onanuga specifically pointed out that diesel was deregulated during the administration in which Atiku served as Vice-President, while kerosene and aviation fuel were subsequently deregulated under later administrations.
He questioned whether the proposed subsidy would apply exclusively to petrol or extend to other petroleum products that are also important to households, businesses, transportation and industry.
He also raised concerns about the possibility of supplying refineries with discounted crude while subsidising only petrol, arguing that refineries would continue producing other petroleum products from the same crude.
The statement said a comprehensive petroleum policy should therefore clearly explain how crude allocation, refining, pricing and subsidies would work together without creating new distortions or placing additional pressure on public finances.
Onanuga maintained that Nigeria’s economic challenges require policies that are transparent, sustainable and properly costed rather than measures he described as politically motivated.
He concluded by urging the former vice-president to present Nigerians with a detailed and coherent petroleum policy ahead of the 2027 general elections, including clear answers on who would benefit, how much the policy would cost, how it would be financed and how long it would remain in place.
Onanuga Challenges Atiku to Clarify His Petrol Subsidy Proposal