Atiku Backs Dangote Refinery, Rejects Government-Controlled Petrol Pricing

Former Vice President Atiku Abubakar has said concerns raised by Dangote Refinery over government-imposed petrol prices have strengthened his argument for a production-based fuel subsidy in Nigeria.

According to Ireporter Online, Atiku, through his Senior Special Assistant on Public Communication, Phrank Shaibu, said on Friday that his proposal was not aimed at forcing private refineries to sell petrol below cost.

Instead, he said the proposed policy would reduce the cost of crude oil feedstock supplied to eligible Nigerian refineries, allowing them to produce refined petroleum products more competitively.

“Dangote raised a legitimate business concern. The Presidency turned it into a campaign of fear,” Atiku said.

He explained that his proposal was based on a production subsidy rather than an import subsidy, with the objective of supporting crude oil refined within Nigeria.

According to the former vice-president, an import subsidy would support petroleum products refined outside the country, whereas a production-based model would lower the cost of crude supplied to domestic refineries.

“The subsidy follows the barrel refined in Nigeria,” he said.

Atiku said the proposed system would involve a capped level of support for crude supplied to qualifying refineries, alongside independent verification, electronic monitoring of crude intake and refined output, domestic supply obligations and regular audits.

He also rejected the argument that efforts to keep petrol affordable would necessarily undermine the profitability of refineries.

“We reject the false choice between a profitable refinery and an affordable pump price. A competent government should be able to protect both the producer and the consumer,” he said.

Atiku argued that the government should not arbitrarily determine petrol prices while leaving private refiners to absorb any resulting losses.

He said if the government wanted to provide additional relief to consumers beyond what lower crude-input costs could sustainably achieve, such intervention should be openly funded through the national budget.

“If the government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then the government must pay for that relief openly. It must be budgeted. It must be capped. It must be audited,” Atiku said.

The former vice-president maintained that his proposed policy was intended to encourage domestic refining, attract investment, expand refinery capacity and create employment opportunities while helping to lower the cost of petrol for Nigerians.

“We are proposing targeted support for crude refined here in Nigeria so that domestic refineries can produce more competitively, expand capacity, create jobs and sell fuel at a price Nigerians can better afford,” he said.