The Federal Government has ruled out a return to petrol subsidy, saying restoring the policy would undermine reforms in the petroleum sector and create fresh fiscal problems.
The government was responding to former Vice President Atiku Abubakar’s promise to restore a form of petrol subsidy if elected president in 2027.
Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, described the proposal as “retrogressive, fiscally unsustainable” and driven by “desperation to win the presidency.”
Onanuga said Nigeria’s petroleum sector had changed significantly since Tinubu announced the removal of the subsidy in May 2023.
He also warned that bringing back the subsidy could discourage investment in local refining, including the Dangote Refinery and modular refineries, while creating legal and fiscal complications.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the subsidy removal had generated ₦15.8 trillion in resources for the federation between June 2023 and December 2025.
According to him, ₦5.4 trillion went to the federal government, while ₦10.4 trillion was shared among state and local governments.
Tinubu also criticised Atiku’s proposal, saying it showed “a high level of ignorance of governance and the economy.”
Atiku, the presidential candidate of the African Democratic Congress, has argued that Nigerians have not benefited enough from the savings generated by subsidy removal.
He said his proposed intervention would support domestic refineries through cheaper crude feedstock while ensuring consumers benefit from lower prices.
Atiku said the proposal was not a return to the former opaque subsidy system but a controlled mechanism tied to production and consumer benefits.
The debate comes as the 2027 presidential contest intensifies, with the economy and the high cost of living expected to remain major campaign issues.
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