Presidency Rejects Atiku’s Fuel Subsidy Plan, Cites Fiscal Risks and Refinery Investment

The Presidency has rejected Atiku Abubakar’s proposal to restore petrol subsidy if elected in 2027. It says a return to subsidy payments could reverse petroleum-sector reforms, create fiscal and legal pressures, and discourage investment in local refining. The government says subsidy removal generated ₦15.8 trillion for the federation between June 2023 and December 2025. It argues that the funds should support public services and economic development rather than a return to the previous subsidy system. Atiku maintains that Nigerians have not felt enough benefit from the policy. He proposes a controlled intervention linked to domestic refining, with crude allocations tracked to ensure lower costs reach consumers. Economists and citizens remain divided. While some warn that blanket subsidies could revive smuggling and fiscal leakages, others say rising fuel prices, food costs and weak purchasing power have made the proposal appealing to many households.

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