Business & Economy
Let’s Activate Our Refineries; We Don’t Need Oil Subsidy – Atiku
Atiku has said Nigeria must encourage local refineries to get rid of oil subsidy costs.
Eko Hot Blog reports that the presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, has said Nigeria needs functioning local refineries to be able to get rid of oil subsidy costs.
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Recall that President Muhammadu Buhari budgeted N3.6 trillion to fund the fuel subsidy for the first half of the year 2023.
But Atiku has described the subsidy costs as unsustainable because the government is borrowing to pay them.
The PDP presidential candidate made the statement on Sunday at the Arise News Town Hall Meeting organised for presidential candidates to answer questions about the economy and security.
He was responding to a question by renowned economist, Bismarck Rewane, who asked how the candidates would tackle the issue of oil subsidy costs.
According to Atiku, the oil subsidy scheme is “criminal” and a means for some people to benefit themselves at the expense of the commonwealth.
He suggested the need to move away from the regime of importing refined fuel, saying Nigeria must prioritise local refining.
Presidential candidates at the Town Hall event
The PDP presidential candidate also stated that the Federal Government must tackle impediments that are delaying the launch of the Dangote Refinery.
“There is a crime in oil subsidy. Let’s find ways of refining oil in Nigeria. Anything that is an impediment should be tackled. Government has to help get Dangote’s refinery up and running,” Atiku said.
“We must encourage local refinery construction to get rid of subsidy. You can’t borrow money to pay for subsidy. That’s not the way to go.”
He also spoke on the issue of oil theft, which has been robbing the country of vital oil revenues.
The PDP presidential candidate, therefore, called for the honest surveillance of refineries.
“We have the organised crime. Illegal refining is going on. We need to have a pipeline surveillance system that is effective. The people who were doing the surveillance in the past were doing crime,” Atiku said.
“If we produce and no longer subsiding oil. If we privatise the refinery companies, we will be able to cut subsidy costs. We won’t be in a situation of borrowing money for subsidy if we do these things.”
He also weighed in on the falling value of the naira. While the current official dollar to naira exchange rate stands at around N430, the price at the black market is around N860.
“It’s criminal for us to have a price as official foreign exchange rate and have double of that price at the BDC market,” Atiku said.
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His running mate, Ifeanyi Okowa, is representing him at the town hall event.
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