The All Progressives Congress presidential campaign council has challenged former vice president and African Democratic Congress (ADC) presidential candidate for 2027 elections, Atiku Abubakar, to explain the legal and fiscal basis for his proposed fuel subsidy restoration if elected. 

The council, in a statement on Sunday by its spokesman, Dele Alake, said Mr Abubakar’s proposal raised important legal, fiscal and practical questions that he must answer.

“Atiku should therefore explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed 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. Atiku must also disclose the cost of his proposal and how he would fund it,” the statement read.

Citing the section 205(1) of the Petroleum Industry Act 2021 stating that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products, the council challenged Mr Abubakar to clarify basic assumptions regarding his proposal.

“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,” it added.

Accusing Mr Abubakar of inconsistency, the council said, “His latest position must also be reconciled with his previous support for downstream deregulation. In November 2022 at the Lagos Business School, Atiku described the petrol subsidy system as fraudulent and pledged to complete its removal. He reminded his audience that he chaired the committee that removed its first and second phases, and promised to complete the process. On 25 August 2026, he announced on X, “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.”

Noting that Nigeria spent about two decades developing the PIA, the council explained that the reform process began in 2000, during the first term of the administration in which Mr Abubakar served as the vice president Vice President. 

It further challenged Mr Abubakar to explain how his new proposal aligns with the legal and regulatory framework that emerged from that process.

The council noted that President Bola Tinubu’s administration focused on expanding lower-cost alternatives through compressed natural gas and electric mass transit.

It added that the programmes were already reducing transport costs on routes served by CNG and electric buses, while vehicle conversions and supporting infrastructure continue to expand nationwide.

Acknowledging the impacts of higher petrol prices on Nigerians, the council said the Tinubu administration would continue to implement policies to support our people. 

It explained, “Petrol sold for about ₦830 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 NMDPRA is working with the Federal Competition and Consumer Protection Commission against price-gouging and with the Nigeria Customs Service against the diversion of petroleum products across our borders.”

The council that insisted every intervention must be transparent and legal, challenging Mr Abubakar to clearly explain to Nigerians the fiscal and legal analysis of his subsidy proposal.

“Atiku should provide Nigerians with a detailed policy document and 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. For a start, we recommend that Atiku read the PIA, as he appears out of touch with reality and the oil sector’s current dynamics,” it added.