The African Democratic Congress (ADC) has rejected claims by the Presidency that former Vice President Atiku Abubakar’s proposal to reduce petrol prices to about N600 per litre amounts to a return to Nigeria’s old fuel subsidy regime.
The party said Atiku’s proposal was instead a controlled
production incentive for domestic refineries, designed to lower the cost of
petrol while strengthening local refining capacity.
The ADC National Publicity Secretary, Bolaji Abdullahi,
stated this in response to the Presidency’s criticism of the proposal.
According to him, “The Presidency has based its argument on
a projected N19.1 trillion cost without properly considering how Atiku’s
proposal is structured or the wider economic benefits of cheaper fuel produced
locally.”
He added, “We are at a loss how the presidency conjured up
this phantom figure. But we do not agree with it,”
Abdullahi explained that Atiku’s plan would have a fiscal
limit and mechanisms for monitoring the movement of crude from refinery intake
to finished petroleum products.
The party argued that the Presidency was criticising the old
subsidy system rather than Atiku’s proposed controlled subsidy plan, which it
said was intended to replace it.
The ADC also questioned the government’s justification for
providing incentives to oil producers while rejecting measures aimed at
reducing the burden of high fuel prices on Nigerians.
Abdullahi referred to offshore oil production incentives
that can reach $11.50 per barrel, asking why a similar, controlled incentive
for domestic refineries should be considered unacceptable.
“If Nigeria can provide a production-linked fiscal incentive
of up to $11.50 per barrel to stimulate offshore oil production, why is a
carefully controlled crude-input incentive for domestic refineries dismissed as
economic madness when its objective is to make fuel cheaper for Nigerians and
build domestic refining capacity?” he asked.
The ADC further argued that the cost of maintaining high
petrol prices should also be considered when assessing Atiku’s proposal.
It said expensive petrol had contributed to higher
transportation costs, food prices, production expenses and the wider
cost-of-living crisis.
The party maintained that its proposal would be capped,
audited and traceable, while potentially reducing petroleum imports, saving
foreign exchange and supporting domestic refining.
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