Former Vice President Atiku Abubakar has accused the Tinubu Presidency of deliberately distorting concerns raised by Dangote Refinery in a desperate attempt to discredit his production subsidy proposal, saying the refinery’s warning against arbitrary pump-price controls actually exposes the dishonesty of the government’s argument.

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said Dangote Refinery was right to insist that a private refinery cannot be forced to carry losses created by government-imposed prices, but said the Presidency was being deliberately dishonest by pretending that this was what his plan proposed.

“Dangote raised a legitimate business concern. The Presidency turned it into a campaign of fear.

“A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses. That would be reckless, economically destructive and unfair to any private investor.

“But that is precisely why our proposal is different.

“We are restoring subsidy through a production subsidy model, not an import subsidy model.

“The difference is simple enough for every Nigerian to understand. Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria. Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less.

“Think of it like rice. If government wants rice to become cheaper, it has two choices: spend money making imported rice cheaper, or help Nigerian farmers reduce the cost of producing rice at home. The second option lowers prices while also creating jobs, strengthening local businesses and keeping economic activity in Nigeria.

“That is exactly what we are proposing for fuel.

*We are restoring subsidy, but moving it from importation to production.* 

“The subsidy follows the barrel refined in Nigeria.”

Atiku said his proposal would reduce the cost of crude feedstock supplied to qualifying domestic refineries through a transparent, capped and independently verified mechanism.

“If the crude entering a refinery becomes cheaper, the cost of producing petrol should also come down. That reduction should then reach the average Nigerian while preserving legitimate refining costs and a reasonable commercial margin.

“There is a clear difference between helping a producer reduce costs and forcing that producer to sell at a loss.

“The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians.”

Atiku said the government’s attempt to equate every subsidy with import dependence was a brazen, dishonest and crude distortion designed to mislead Nigerians of the policy debate.

“Under our plan, support will be tied strictly to crude refined in Nigeria. Nigerian refineries will benefit. Nigerian workers will benefit. Nigerian businesses will benefit. Nigerian consumers will benefit.

“If you do not refine in Nigeria, you do not qualify.

“This is not a subsidy for foreign refineries. It is not a subsidy for importers. It is not a subsidy for middlemen.

“It is a subsidy for Nigerian production.”

The former Vice President said the Presidency’s reaction to Dangote’s disclosure showed how desperate the government had become to defend an economic model that had made everyday life painfully expensive for millions of Nigerians.

“Dangote raised concerns about margins, price controls and policy uncertainty. The Presidency somehow converted that into a prophecy that the economy would collapse.

“That is not economics. It is melodrama from the Villa.

“A refinery warning that it should not be forced to sell at a loss is not the same as saying that government must never support domestic production.

“In fact, the warning proves why the intervention must be intelligently structured.

“Our policy does exactly that.”

Atiku said his administration would not fix an arbitrary pump price and compel domestic refineries to carry the financial burden.

“If government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then government must pay for that relief openly.

“It must be budgeted. It must be capped. It must be audited. Nigerians must know exactly what is being spent and what they are receiving in return.

“You cannot announce a politically convenient petrol price and quietly dump the cost on the refinery.

“That is not policy. That is confiscation by another name.”

Atiku said the production subsidy would therefore operate with strict safeguards, including a hard fiscal ceiling, a maximum support level per barrel, independent verification of supported crude, electronic tracking of crude intake and refined output, domestic-supply obligations, transparent pricing, independent audits and severe penalties for diversion or fraud.

“We will know how many barrels receive support, which refinery receives them, what is produced, what it costs the taxpayer and what benefit Nigerians receive.

“No mystery barrels. No endless claims. No blank cheques.”

Atiku said Nigeria’s refining future would depend heavily on private capital and that the commercial viability of domestic refineries must therefore be protected.

“Dangote Refinery, modular refineries and other Nigerian investments must remain viable. We want more refineries, more investment, more competition and more refining capacity.

“But the Nigerian consumer must also benefit from the fact that this country produces crude oil.

“We reject the false choice between a profitable refinery and an affordable pump price.

“A competent government should be able to protect both the producer and the consumer.”

Atiku accused the Tinubu administration of turning hardship into an ideology and calling it reform.

“For three years, Nigerians have been told to endure.

“Fuel rises, they say endure. Transport rises, endure. Food rises, endure. Businesses are crushed by energy costs, endure. Household incomes collapse, endure.

“Every new hardship is presented as proof that reform is working.

“Then we propose a production subsidy that will reduce the underlying cost of making petrol in Nigeria, and suddenly the Presidency predicts catastrophe.

“What kind of government is terrified by a policy designed to make production cheaper and life more affordable?”

Atiku said the hypocrisy was even more glaring because the Tinubu administration itself routinely grants waivers, tax credits, incentives and concessions to businesses.

“So intervention is acceptable when government gives waivers and concessions to powerful interests, but it suddenly becomes dangerous when the objective is to reduce the cost of fuel, transport and food for ordinary Nigerians?

“That is not economic principle. That is selective compassion.

“Our proposal is clear: support domestic production, reduce the cost of crude going into Nigerian refineries, protect legitimate refinery margins and ensure that lower production costs translate into lower costs for Nigerians.”

Atiku said the Presidency should stop inventing a policy for him and then attacking the fiction it created.

“We have been clear from the beginning.

“We are restoring subsidy through a production model.

“We are proposing a production subsidy not an import subsidy. We are not proposing to subsidise petrol refined abroad. We are not proposing to force Dangote or any other Nigerian refinery to sell below cost.

“We are proposing targeted support for crude refined here in Nigeria so that domestic refineries can produce more competitively, expand capacity, create jobs and sell fuel at a price Nigerians can better afford.

“If the Presidency wants a debate, let us have the debate.

“But let it first stop lying about what we are proposing.”

Atiku said Dangote’s warning ultimately strengthens the case for the production subsidy model.

“Dangote is right that a refinery should not be forced to carry the burden of an artificially imposed price. We agree.

“Nigerians are also right that the present cost of fuel, transportation, food and doing business has become unbearable.

“Our production subsidy answers both concerns.

“It protects refinery viability while reducing the cost of producing fuel in Nigeria.

“That is the choice before the country: continue with a system in which Nigerians pay more and government merely explains their suffering, or move to a production model that deliberately lowers costs and puts money back into people’s pockets.

“We choose production.

“We choose Nigerian refining.

“We choose Nigerian jobs.

“We choose affordability.

Subsidise Nigerian production, not foreign importation. Produce here. Refine here. Create jobs here. Pay less here.

“That is the Atiku production subsidy model, and no amount of propaganda from the Tinubu Presidency can change what it is.”

Signed:

Phrank Shaibu

Senior Special Assistant on Public Communication to Atiku Abubakar, Vice President of Nigeria, 1999–2007, and Presidential Candidate of the African Democratic Congress.

11 September 2026