If government subsidises fuel or crude for refineries, how will that be paid for and controlled?
It will be explicitly capped in the national budget and funded from domestic crude sales - every naira tracked: how many barrels, which refinery, what it costs you, what you get back. No mystery barrels, no blank cheques. Price shocks will be managed through fiscal stabilization buffers and oil revenue hedging, not by dumping costs onto refineries. Independent audits, electronic tracking and penalties for diversion will keep it honest and under control.
Where this comes from
p. 6 Introduction Atiku Abubakar: Answers to questions from the public 2026-10-02 ›
Answer: I am proposing a Production Subsidy Model that lowers crude supply prices or offers fiscal relief on inputs to local refiners. This reduces refining costs at home and lowers retail pump prices without forcing refiners into losses. Q40: If government subsidises locally refined petrol or crude supplied to refineries, how much will it cost, where will the money come from, and what happens if oil prices rise or government revenue falls? Answer: The subsidy will be explicitly capped in the national budget and funded directly from domestic crude sales. Global price shocks will be managed using structured fiscal stabilization buffers and oil revenue hedging tools.