ABUJA — Former Vice-President and African Democratic Congress presidential candidate, Atiku Abubakar, has accused President Bola Tinubu’s administration of granting generous tax incentives to oil companies at the same time Nigerians are grappling with high petrol prices and a worsening cost of living.
In a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said the government’s policy approach was contradictory.
“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.
Allegations of Double Standards
Atiku faulted the administration for removing petrol subsidy while continuing to offer tax credits, concessions and other incentives to petroleum investors.
He cited the government’s deep offshore oil and gas incentives, which he said allow eligible projects to claim production tax credits of between $3 and $4.50 per barrel. According to him, other incentives could push the total benefit to as high as $11.50 per barrel in some cases.
“So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?” he asked.
Questions Over ‘Ended’ Subsidy
The former Vice-President also challenged the claim that fuel subsidy had been fully removed.
Quoting NNPC Limited’s audited accounts, Atiku said the company recorded about N4.84 trillion in “energy-security expenses and related shortfalls” in 2023, which rose to about N7.13 trillion in 2024.
He noted that NNPC attributed part of the expenses to the gap between the exchange rate used to set regulated PMS prices and the rate applied 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 argued that regardless of terminology, public funds were still being used to bridge the gap between petrol cost and pump price.
Atiku Proposes Targeted Intervention
Atiku said his proposed economic recovery plan would not reinstate the previous “open-ended and opaque” subsidy regime.
Instead, he pledged to introduce a targeted, capped and independently audited intervention tied to local production. The plan, he said, would also focus on expanding refining capacity, improving market competition, and restoring household purchasing power.
“You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform,” he stated.
He further called for full transparency on tax credits, remissions and other incentives in the petroleum sector, including disclosure of beneficiaries, revenue implications, and investments delivered. Nigerian investors, he added, should be given fair access to the same benefits.
According to Atiku, the success of reforms should be measured by improved living standards, not by the level of hardship citizens endure.
The criticism comes a week after Atiku said he would restore petrol subsidy if elected in 2027 — a proposal President Tinubu dismissed, calling Atiku “ignorant of governance and the economy.”
Comments