Former Vice-President Atiku Abubakar has accused the Federal Government of giving tax incentives and other benefits to oil companies while Nigerians continue to struggle with high petrol prices and the rising cost of living.
Atiku, the African Democratic Congress (ADC) presidential candidate, made the allegation in a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu.
He said President Bola Tinubu’s decision to remove the petrol subsidy was inconsistent with the government’s continued use of tax credits, concessions and other incentives to support petroleum investors.
“Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes,” Atiku said.
He argued that the government’s deep offshore oil and gas incentives allow eligible projects to receive production tax credits of between $3 and $4.50 per barrel, with other incentives potentially increasing the total benefit to $11.50 per barrel in some cases.
“So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?” he asked.
Atiku also questioned the claim that the petrol subsidy had completely ended. He cited NNPC Limited’s audited accounts, which he said recorded about N4.84 trillion in energy-security expenses and related shortfalls in 2023, rising to about N7.13 trillion in 2024.
He said NNPC attributed part of the expenses to the difference between the exchange rate used to determine regulated PMS prices and the rate applicable when import obligations were settled.
“So, where exactly did the subsidy go? 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 asked.
He said the government should not focus on what the payments are called because public funds were still being used to cover the gap between the cost of petrol and its selling price.
Atiku said his proposed economic recovery programme would not bring back the former subsidy system, which he described as open-ended and opaque.
Instead, he said he would introduce a targeted and capped intervention that would be properly budgeted and independently audited. He added that the plan would be linked to local production and supported by efforts to increase refining capacity, improve competition and restore household purchasing power.
“You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform,” Atiku said.
He also called for more transparency over tax credits, remissions and other incentives given to companies in the petroleum sector, including details of beneficiaries, the revenue involved and the investments delivered in return.
Atiku said Nigerian investors should also have fair and transparent access to similar incentives.
He added that the success of economic reforms should be judged by whether they improve people’s living standards, rather than by how much hardship Nigerians can endure.
Last week, Atiku said he would restore the petrol subsidy if elected president in 2027. Tinubu later criticised the proposal, describing Atiku as “ignorant of governance and the economy.”
Atiku accuses Tinubu of favouring oil companies with tax incentives amid rising petrol prices