Former Vice-President Atiku Abubakar has accused the Federal Government of offering generous tax incentives and concessions to oil companies while Nigerians continue to endure high petrol prices and a worsening cost of living. In a statement released on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku criticized President Bola Tinubu’s economic policies, particularly the removal of fuel subsidy, calling it inconsistent with ongoing support for petroleum investors.
Atiku argued that the government’s decision to remove the petrol subsidy was misleading, especially since it continues to provide substantial financial benefits to oil firms through deep offshore oil and gas incentives. He highlighted that eligible projects can receive production tax credits ranging from $3 to $4.50 per barrel, with additional incentives potentially pushing the total benefit to $11.50 per barrel in some cases. “Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform,” Atiku said. “But when major oil investors knock on Tinubu’s door, the sermon changes.”
He questioned the official narrative that the subsidy has been fully eliminated, citing NNPC Limited’s audited accounts which recorded energy-security expenses and related shortfalls of N4.84 trillion in 2023, rising to N7.13 trillion in 2024. According to Atiku, part of these expenses stems from the difference between the exchange rate used to set regulated petrol prices and the rate applied during import settlements. “So, where exactly did the subsidy go?” he asked. “If Nigerians were paying market prices because ‘subsidy is gone’, why was the Federation still carrying trillions of naira in under-recovery and energy-security costs?”
Atiku emphasized that regardless of what these payments are called, public funds are still being used to cover the gap between the actual cost of petrol and its selling price. He rejected the idea of restoring the old, open-ended subsidy system, which he described as opaque and unsustainable. Instead, he proposed a targeted, capped intervention that would be properly budgeted, independently audited, and tied to local production, refining capacity expansion, improved competition, and restored household purchasing power.
“You cannot subsidise capital and criminalise relief for citizens,” Atiku stated. “You cannot offer cushions upstairs and call suffering downstairs reform.” He also called for greater transparency in tax credits, remissions, and other incentives given to petroleum sector companies, demanding details on beneficiaries, revenue involved, and investments delivered in return. He stressed that Nigerian investors should have equal access to such incentives.
Atiku concluded that the true measure of economic reform should be whether it improves people’s living standards, not how much hardship they must endure. Last week, he announced plans to restore the petrol subsidy if elected president in 2027, prompting criticism from President Tinubu, who labeled him “ignorant of governance and the economy.” As the 2027 presidential race looms, Atiku’s stance on energy policy and economic fairness is likely to remain a central point of debate.
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