What will stop your proposed subsidy from becoming another subsidy system that government cannot afford?

Q41: How will you ensure that any subsidy reaches consumers rather than becoming additional profit for refinery owners, being diverted, or being abused through corruption and false claims? Answer: Subsidies will be paid only on verified volume output measured by digital meters at refinery gates, backed by end-to-end supply chain tracking to prevent false claims and smuggling. Q42: Which refineries would qualify for the subsidy, how will Nigerians know how much government is spending, and what mechanisms will ensure transparency? Answer: All licensed public and private domestic refineries qualify. Transparency is guaranteed through monthly public reporting of crude allocations, refined outputs, and subsidy payouts on an open portal. Q43: How long would the subsidy last, and what conditions would determine when it should be reduced or ended? Answer: My policy includes a clear sunset clause, gradually unwinding the subsidy as domestic refining meets 100% of national demand, foreign exchange stabilizes, and consumer incomes rise.

Third, adopt a gradualist approach in the implementation of the subsidy reforms. Subsidies would not have been removed suddenly and completely. It is instructive that when I was Vice President, we adopted a gradualist approach and had completed phases 1 and 2 of the reform before our tenure ended. The incoming administration in 2007 abandoned the reforms, unfortunately. The majority of the countries that review or rationalize subsidy payments adopt a gradualist approach by phasing price increases or shifting from universal to targeted approach (Malaysia, 2022 and Indonesia, 2022 -2023). In many EU economies, complete withdrawal often takes 5 years to effect. The gradualist approach allows for adjustments, adaptation and minimizes disruptions and vulnerability. Fourth, implement a robust social protection programme that will support the poor in navigating the cost-of-living challenges arising largely from reform implementation. We would’ve invested the savings from subsidy withdrawal to strengthen the productive base of the economy through infrastructure maintenance and development; to improve outcomes in education and healthcare delivery; to improve rural infrastructure and support livelihood expansion in agriculture; and develop the skills and entrepreneurial capacity of our youth in order to enhance their access to better economic opportunities.

“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.

“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.

Atiku said the relationship between energy costs and household welfare was precisely why his economic programme placed affordability at its centre. The World Bank has previously noted that higher petrol prices reduce household purchasing power directly and can also feed through into the prices of other goods and services, particularly transportation. “When fuel becomes expensive, transporting tomatoes from the farm becomes expensive. Taking rice to the market becomes expensive. Moving children to school becomes expensive. Running the neighbourhood grinding machine becomes expensive. Powering the small shop becomes expensive. “And eventually, the additional cost arrives at the dinner table. “That is why I refuse to accept an economic philosophy in which government simply watches prices rise and tells struggling citizens to endure.” Atiku reiterated that his proposed petroleum intervention is a production subsidy, rather than a return to subsidising imported petrol. His published proposal provides for targeted support tied to crude refined domestically, with the intervention capped, transparently budgeted and independently audited.

Meanwhile, local contractors who completed government projects remain unpaid. Many borrowed from banks to do the work and now face demands for repayment on money the government owes them. Some have lost their property; their representatives say some have died under the financial strain. Bola, why do your friends get huge contracts while Nigerian contractors have to protest to be paid for work they have already done? Pay the contractors. Publish what is owed and when it will be paid. Nigerians are entitled to know whose prosperity your government is building. Nigeria’s public debt stood at ₦166.79 trillion at the end of June, and your government is now discussing another $1.5 billion in World Bank loans. Before you borrow another dollar in the people’s name, tell them what the money already borrowed has delivered. Name the projects. Show what they cost, who benefited and who was paid. From my first day in office, I will put affordability and the protection of life at the centre of government. We will begin bringing down the costs of food, fuel and power, improving access to healthcare and education, and restoring security to communities living in fear. I will account for public spending and measure progress by what Nigerians can afford and whether they can live safely.