Presidency Challenges Atiku To Explain Cost, Funding Of Proposed Fuel Subsidy

The Presidency has challenged former Vice President Atiku Abubakar to provide details on how he plans to fund his proposed petroleum subsidy without placing additional pressure on Nigeria’s public finances.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, says any proposal to restore fuel subsidy must clearly state its annual cost, source of funding and possible impact on revenues available to the federal, state and local governments.

Onanuga warned that selling petrol significantly below what he described as its economic cost of between ₦1,200 and ₦1,300 per litre would require government to absorb the difference.

He said such spending could reduce funding for infrastructure and social services, lower allocations to states and local governments, or lead to increased borrowing and public debt.

The Presidency acknowledged the pressure of high petrol and transportation costs on Nigerians but said the government is pursuing alternatives, including Compressed Natural Gas, CNG, which it says is about 70 per cent cheaper than petrol.

It also asked Atiku to explain whether his proposed subsidy would require changes to the Petroleum Industry Act and what safeguards would be introduced to prevent abuses associated with previous subsidy arrangements.

The Presidency says it welcomes debate on Nigeria’s cost-of-living challenges but insists that proposals to restore fuel subsidy must clearly explain their fiscal and legal implications.