The vice-presidential candidate of the African Democratic Congress (ADC), Rotimi Amaechi, says an Atiku Abubakar administration would seek changes to Nigeria’s petroleum law if the existing legal framework prevents it from introducing a production subsidy for locally refined fuel.
Mr Amaechi spoke on Channels Television’s Politics Today on Friday while explaining how the ADC presidential ticket intends to support domestic refining without returning to the previous subsidy arrangement for imported petrol.
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“One of such things that we will introduce, if the law prohibits us from doing it, is that we will put immediately that President Atiku assumes office, a law before the National Assembly, a bill before the National Assembly that… introduces production subsidy. Immediately so that we can begin to implement it,” Mr Amaechi said.
Responding to a question about the Petroleum Industry Act (PIA), the former Rivers State governor said an Atiku administration would follow the legal process required to implement the policy.
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“How do we intend to introduce production subsidy? The same thing Tinubu could have done. By either repealing the law or going for an amendment. Because it’s about the lives of Nigerians,” he said.
“Everything we will do will be legal.”
His comments address, at least partly, questions raised by the All Progressives Congress Presidential Campaign Council on 20 September. The council asked Atiku to explain the legal, fiscal and operational basis of the proposal, including whether changes to the PIA would be required and how the intervention would be funded and translated into lower pump prices.
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How the subsidy would work
Mr Amaechi illustrated the proposed production subsidy with hypothetical figures, saying the government would sell crude to domestic refiners below the prevailing international-market price, with the difference constituting the subsidy.
If crude were valued at N15,000, he said, the government could sell it to the Dangote refinery and modular refineries at N10,000, treating the N5,000 difference as the subsidy.
“If you sell at 10, what happens? The price of everything will just come down. Transport, fuel,” he said.
Mr Amaechi said support would not be limited to the Dangote Refinery but would extend to modular refineries, arguing that the arrangement could encourage further investment in domestic refining.
“We will also not only fund Dangote Refinery by way of subsidy, there are other modular refineries that are existing in Nigeria that will also benefit and produce for the economy,” he said.
‘Not the old subsidy’
Mr Amaechi distinguished the proposal from the previous petrol subsidy regime.
“We will introduce a subsidy. But not the type of subsidy that was removed. We will deal with production subsidy, which means no more importation of fuel,” he said.
He argued that reliance on imported petroleum products supports employment outside Nigeria, while increased domestic refining could create jobs in refinery construction and operations.
Atiku has previously proposed targeted government support for locally refined petroleum products if elected in 2027. The proposal has drawn questions over its legal, fiscal and operational implications. The APC campaign council has specifically asked how support given to refiners would translate into lower prices for consumers.
One-year timeline
Asked how soon the ticket could reduce the costs of food, petrol and transportation, Mr Amaechi said: “Give us one year. If you don’t begin to feel the change, I will leave.”
He said introducing the production subsidy itself would not require a year, but expanding domestic refining and its wider economic effects would take time.
“It will not be a one-day thing, it will be a gradual process, but before the end of a year, you will see how much improvement there will be in the economy,” he said.
READ ALSO: ‘Tinubu’s policies killed my mother, I couldn’t afford her drugs’ – Amaechi
Mr Amaechi also criticised the Tinubu administration’s handling of petrol subsidy removal and the cost of living.
In another part of the interview, he said he would withdraw as Atiku’s running mate and campaign for President Bola Tinubu if petrol sold for N600 per litre the following day.
Mr Amaechi did not state the actual discount an Atiku administration would apply to domestic crude, the volume that would qualify, the programme’s annual cost or the formula for ensuring that participating refineries pass the benefit to consumers.
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