The Presidential Campaign Council of the All Progressives Congress has asked Atiku Abubakar, presidential candidate of the African Democratic Congress, to clarify the legal and financial foundation of his proposed production subsidy for petrol refined within Nigeria.

The APC-PCC said Atiku needs to explain how such a scheme would work under the provisions of the Petroleum Industry Act 2021, and how the Federal Government would raise funds to support it.

Dele Alake, spokesman for the council, made this known in a statement issued on Sunday, noting that the proposal has thrown up “important legal, fiscal and practical questions” which Atiku is yet to address.

This comes after Atiku visited President Bola Tinubu on Friday to press for lower petrol and diesel prices, during which he pitched a production subsidy for locally refined petroleum products as a route to cheaper fuel at the pump.

Alake referred to Section 205(1) of the PIA, which states that wholesale and retail prices of petroleum products are to be determined by unrestricted free-market pricing conditions.

Separately, the Nigerian Midstream and Downstream Petroleum Regulatory Authority stated on Saturday that it neither fixes petrol pump prices nor issues administrative pricing templates, except in cases where statutory conditions for intervention have been satisfied.

The regulator added that no market failure has so far been declared.

Against this backdrop, the APC-PCC spokesman asked Atiku to state whether a refinery benefiting from the proposed subsidy would be obligated to sell petrol at a fixed price.

“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act.

“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations. Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices,” Alake said.

He further challenged Atiku to reveal what the proposal would cost and how such funding would be sourced.

The APC-PCC noted that Atiku had earlier floated the idea of preferentially priced crude for local refineries, contending that any such discount would diminish the value flowing to the Federation Account, and by extension, cut into revenue shared among the federal, state and local governments.

“Based on publicly reported refinery throughput and domestic petrol-supply figures, the cost of the new subsidy could run as high as N17 or N21 trillion annually, depending on the discount size, the volume covered, and whether the support applies to the entire barrel or only to petrol sold domestically.

“These assumptions must be clearly defined. Nigerians deserve to know: the proposed subsidy rate; the annual spending ceiling; the volume of crude or petrol to be covered; the source of funding; the mechanism guaranteeing lower pump prices; the safeguards against diversion, smuggling and fraudulent claims; and whether amendments to the Petroleum Industry Act would be required,” the statement said.

Alake also queried the consistency of Atiku’s current stance with his earlier backing of downstream deregulation.

He pointed out that Atiku, speaking at the Lagos Business School in November 2022, had described the petrol subsidy regime as fraudulent and vowed to see its removal through to completion.

The APC-PCC spokesman also cited a post by Atiku on X dated August 25, 2026, in which the former vice president declared, “I will restore it!”

“He must explain why he now advocates restoring subsidy in another form and how his proposed arrangement would avoid the abuse, scarcity, smuggling and fiscal losses associated with the old system,” Alake said.

The statement went further to recall the deregulation of diesel in June 2003 and of aviation fuel, both of which occurred under former President Olusegun Obasanjo’s administration, in which Atiku served as vice president.

It noted that petrol was the last major petroleum product still under the old subsidy arrangement, which had been scheduled to end in June 2023 under the PIA.

According to the APC-PCC, the reform process that produced the PIA began in 2000, during Atiku’s first term as vice president, and the council challenged him to explain how his new proposal squares with the existing legal and regulatory framework.

The council drew a contrast between Atiku’s proposal and the Tinubu administration’s emphasis on compressed natural gas and electric mass transit as alternative means of cutting transportation costs.

It stated that more than 120,000 vehicles have so far been converted to CNG, while CNG and electric bus programmes have brought down fares along certain routes.

Citing remarks made by Tinubu on Saturday, Alake said the President had told state governors on August 27 that, “From October 1, more Nigerians should begin to see measurable reductions in transportation costs.”

The statement also referenced examples drawn from Borno, Niger, Kaduna, Adamawa and Abia states in support of its claims regarding reduced transport costs.

However, the APC-PCC took a swipe at Atiku’s proposal, stating, “In contrast, Atiku is reaching into Nigeria’s past with another subsidy scheme that will enrich smugglers in particular.”

The council maintained that government would continue operating a deregulated downstream market, which it said has spurred greater investment in domestic refining capacity.

It cited the Dangote Petroleum Refinery as an example, noting that the facility has attained its nameplate capacity of 650,000 barrels per day and reportedly hit 700,000 barrels per day during performance tests. Recent reports place the refinery’s current operating capacity at about 700,000 barrels per day, with its planned initial public offering valued at roughly N2.15 trillion.

The APC-PCC acknowledged the strain caused by rising petrol prices and stated that the Tinubu administration would keep implementing policies to cushion the impact on Nigerians.

“Petrol sold for about N830 per litre before the Middle East crisis pushed crude oil prices above $100 per barrel. A de-escalation of the crisis could help reduce crude oil prices and, consequently, the pump prices of petrol and diesel, not just in Nigeria, but worldwide,” the statement said.

It added that the NMDPRA is collaborating with the Federal Competition and Consumer Protection Commission to curb price-gouging, and with the Nigeria Customs Service to check the diversion of petroleum products across Nigeria’s borders.

The APC-PCC called on Atiku to produce a detailed policy document alongside an independent legal and fiscal analysis of his proposal.

“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” Alake said.

He also urged Atiku to read the PIA, adding that he appeared “out of touch with reality and the oil sector’s current dynamics.”