2027: Atiku to restore petrol subsidy, phase it out gradually — Paul Ibe

Paul Ibe, spokesperson to former Vice-President Atiku Abubakar, has said an Atiku administration would temporarily reintroduce petrol subsidy if the former vice-president wins the 2027 presidential election.

Ibe explained that the proposed policy would be designed as a short-term economic intervention, giving households and businesses time to adjust to prevailing economic conditions before the subsidy is eventually withdrawn.

He made the disclosure during an interview on AIT, while explaining Atiku’s position on the removal of petrol subsidy and the economic hardship associated with the policy.

According to Ibe, Atiku does not intend to return to the subsidy arrangement of the past. Rather, the proposal would involve using Nigeria’s crude oil resources to support domestic refining and reduce the cost of petroleum products.

“We are not returning to Egypt. We are not going back to the old regime that was opaque,” he said.

Ibe said crude oil would be made available to local refineries at a reduced price, allowing them to produce petrol and diesel more cheaply.

The savings, he said, would help bring down the cost of petroleum products for consumers.

“The crude oil will be sold at a discounted price, subsidised to refiners, and that will enable refiners to be able to produce fuel and diesel at a cheap cost. And when they produce cheaply, they will sell at the real pump price,” he said.

He added that an independent committee would be established to determine an appropriate refinery price based on prevailing market realities.

While acknowledging that the downstream sector had been deregulated, Ibe said deregulation did not prevent the government from monitoring prices and ensuring that the policy achieved its intended objectives.

“There’ll be a window because, of course, we deregulated. You may not fix the price but you can have price monitoring to ensure that everybody aligns with what government hopes to achieve,” he said.

Ibe also faulted the manner in which President Bola Tinubu’s administration removed petrol subsidy, arguing that Nigerians were not given adequate time or support to absorb the impact.

He likened the government’s simultaneous economic reforms to performing several major medical procedures on a patient without allowing enough time for recovery.

“No surgeon, no doctor would carry out two or more serious major surgeries, one after the other. They would do one, allow the patient to recuperate, and then undertake the second, or the third,” he said.

He argued that the removal of petrol subsidy, foreign exchange reforms and the withdrawal of electricity subsidy had combined to increase pressure on households and businesses.

Ibe said Atiku’s proposed temporary intervention would help restore economic activity and create room for manufacturers and other businesses to become more productive.

He also said the former vice-president’s economic agenda would seek to diversify the economy and reduce Nigeria’s reliance on crude oil.

“We also need to start thinking about an economy that is beyond the oil economy. We need to diversify our economy,” Ibe said.

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