Group Challenges Atiku, Obi To Public Debate On Fuel Subsidy Return

The Independent Media and Policy Initiative (IMPI) has challenged former Vice-President Atiku Abubakar and former Anambra State Governor Peter Obi to a public debate on their proposals to restore fuel subsidies.

The policy group wants both politicians to explain how their proposed alternatives would work without worsening Nigeria’s fiscal challenges or reducing revenue available to states and local governments.

In a policy statement signed by its Chairman, Dr Omoniyi Akinsiju, IMPI called for a transparent assessment of the financial, legal and economic implications of bringing back fuel subsidies.

The group argued that political promises must come with clear implementation plans, credible figures and explanations of how the government would fund the proposed interventions.

It questioned whether the proposals could deliver relief to Nigerians without creating fresh financial pressures for the federation.

“If Candidate Atiku’s proposed ‘production subsidy’ model or Candidate Obi’s alternative framework are viable economic solutions, both leaders must step forward and directly answer these critical questions,” Akinsiju said.

IMPI identified crude oil ownership as one of the major concerns surrounding the proposed return to subsidies.

It asked how the government would persuade international oil companies operating joint ventures and private crude producers to sell crude oil to domestic refiners at discounted rates.

According to the group, such a policy could trigger international arbitration, breach existing contracts and discourage investment in the oil sector.

The group also questioned how the government would compensate for potential revenue losses arising from discounted crude oil sales.

It noted that crude oil sales remain a major source of foreign exchange and revenue for the Federation Account Allocation Committee (FAAC), which distributes funds among the federal, state and local governments.

IMPI therefore challenged Atiku and Obi to explain how their administrations would address possible monthly revenue shortfalls running into trillions of naira.

Beyond the financial implications, the group raised concerns about the risk of smuggling and cross-border diversion of subsidised petroleum products.

It argued that price differences between Nigeria and neighbouring countries could encourage traders to move discounted products across borders for profit, similar to practices associated with the previous subsidy regime.

The policy group also asked how the proposals would comply with the Petroleum Industry Act (PIA) 2021, which provides for market-driven pricing in the downstream petroleum sector.

“How do you plan to reconcile a return to price-fixing or crude price differentials with the explicit statutory mandates of the Petroleum Industry Act (PIA) of 2021, which legally enforces full deregulation and market-driven pricing in the downstream sector?” Akinsiju asked.

IMPI further demanded clarity on whether the proposed subsidies would feature in the national budget and receive approval from the National Assembly.

It warned against a return to off-budget deductions by the Nigerian National Petroleum Company Limited (NNPC Limited), which Akinsiju linked to the depletion of public finances and the accumulation of Ways and Means debt.

The group maintained that any proposal to restore subsidies, regardless of the name attached to it, required clear fiscal safeguards and a transparent funding mechanism.

“Re-entering a subsidy regime under any name, whether branded as a ‘production subsidy’ or an ‘interim welfare bridge’, threatens to reverse hard-won fiscal stability, endanger international credit standing and derail the long-term path towards energy independence,” he said.

Akinsiju added that a return to such arrangements could undermine efforts to expand domestic refining and promote crude oil transactions in local currency.

He urged both politicians to move beyond general criticism of existing policies and present detailed plans that address the economic and legal questions surrounding their proposals.

“So we challenge Alhaji Atiku Abubakar and Mr Peter Obi to move beyond generalized criticism and present a step-by-step, empirically-backed implementation roadmap that addresses these fundamental questions before the Nigerian public,” he added.