Atiku Plans to Restore Petrol Subsidy, Phase It Out Gradually

Atiku Plans to Restore Petrol Subsidy, Phase It Out Gradually – Aide
His spokesperson says subsidy would be tied to crude production.
Ibe criticises Tinubu’s simultaneous economic reforms for worsening hardship.

Paul Ibe, spokesperson to former Vice President Atiku Abubakar, has said his principal would restore petrol subsidy if elected president in 2027 and later phase it out.

Atiku, who is the presidential candidate of the African Democratic Congress, ADC, made the proposal as part of his economic plans, according to Ibe.

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EKO HOT BLOG reports that speaking during an interview with AIT, Ibe said the temporary restoration of the subsidy would give Nigerians and businesses time to recover, stimulate economic activity and improve productivity.

He stressed that Atiku’s proposal would not return the country to the previous subsidy regime, which he described as opaque.

Instead, he said the proposed intervention would link government support to crude oil production and domestic refining.

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

“What he’s simply saying is that the subsidy that he is advocating will be tied to the barrel, the crude oil barrel.

“This is perhaps the only thing that we have in so much abundance that Nigerians have not yet benefited from,” Ibe said.

According to him, crude oil would be supplied to local refiners at a discounted price, allowing them to produce petrol and diesel at lower costs.

He said the reduced production costs would eventually translate into lower pump prices for consumers.

Ibe also said an independent committee would be established to determine the appropriate refinery gate price for petroleum products, taking prevailing market conditions into consideration.

Although the downstream petroleum sector has been deregulated, he said the government could still monitor prices to ensure refiners and marketers operate within the framework of the policy.

He explained that the proposed intervention would be implemented for a limited period to stimulate economic activity and improve productivity.

“Yes, if you recall, his argument, even in 2023, was that they’re going to have recourse to having a phased removal,” he said.

Ibe also criticised the administration of President Bola Tinubu over the simultaneous implementation of major economic reforms, particularly the removal of petrol subsidy.

He argued that major economic reforms should be introduced gradually to allow the economy and citizens to adjust.

“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.

“But what has this administration done? The issue of subsidy, flippant. No cabinet. No advisers. Just in the heat of the moment, it has been removed. No shock absorbers. Nothing. No palliatives. Absolutely nothing,” he said.

Ibe said the removal of petrol subsidy, deregulation of the foreign exchange market and electricity subsidy had been implemented around the same period, worsening the economic difficulties faced by Nigerians.

“You need to give Nigerians and give manufacturers an opportunity to ensure that there is productivity,” he said.

Atiku Plans to Restore Petrol Subsidy, Phase It Out Gradually – Aide

“There is little or no productivity in this economy because, I mean, you talk about paying salary, that’s what they are doing there. There is no creativity. They’re simply having plenty of naira as a result of the devaluation.”