Atiku’s Proposed Fuel Subsidy Plan Could Cost Nigeria Up to ₦22tn Yearly, Tinubu Aide Says

Presidential aide O’tega Ogra says former Vice President Atiku Abubakar’s proposed petrol subsidy arrangement could cost Nigeria between ₦19.1 trillion and ₦22.2 trillion each year. Speaking on ARISE News, Ogra said Atiku had not explained key details of the proposal, including the proposed fuel price cap, crude volumes for refineries, funding source and safeguards against abuse. He argued that subsidising crude supplied to refineries could recreate the leakages associated with the former petrol subsidy regime. Ogra noted that subsidy claims rose sharply in the past despite lower budget provisions. He questioned how the government would track whether subsidised crude was used for fuel consumed in Nigeria rather than products exported elsewhere. He also acknowledged that the 2023 subsidy removal could have been phased more gradually. Ogra said the government is pursuing social interventions, transport support and CNG vehicle conversions to ease the impact of the reforms.

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