Atiku’s Cheaper Fuel Plan Still Needs Clear Answers on Cost and Funding

I watched an edition of Trust TV’s Daily Politics where Paul Ibe defended Atiku Abubakar’s latest position on fuel subsidy. The interviewer raised important questions about Atiku’s long record on subsidy removal, local refining, crude supply, forex losses, FAAC allocations, state salaries and pump-price controls. However, the explanation still left major gaps. What pump price is being proposed? How much would crude be discounted for local refiners, and who would bear the cost? What would happen to crude-for-naira arrangements, private marketers and government revenue shared through FAAC? There are also practical concerns about smuggling, arbitrage, verification of subsidised volumes and compliance with the Petroleum Industry Act. If spending is not reduced and taxes are not raised, would the government borrow to finance the policy? The interview was a useful start, but a policy described as having “no downside” deserves stronger scrutiny. Trust TV should consider a follow-up discussion with economists and policy officials who can examine the figures and assumptions line by line.

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