Connect with us

Business

Presidency Slams Atiku Over Unclear Fuel Subsidy Proposal

info

Published

on

The Presidency on Wednesday criticized former Vice-President Atiku Abubakar over what it described as a series of conflicting and unclear proposals regarding the management of petrol subsidies.

A statement signed byBayo Onanuga, Special Adviser to the President (Information & Strategy, noted  that in a swift reaction to recent statements from Atiku  and his media aides, the administration accused him of engaging in policy somersaults and political opportunism rather than offering a coherent economic strategy for the nation.

The criticism follows three contradictory stances issued by Atiku’s camp within a single week, ranging from a complete restoration and gradual phasing out of the subsidy to tying its removal strictly to local refining capacity. Demanding full transparency, the Federal Government challenged the former Vice-President to provide a realistic, costed framework explaining how his proposed “targeted subsidy” would be funded, who would benefit, and how it would avoid plunging the country back into severe fiscal distress.

The statement added that the latest comments by former Vice-President Atiku on petrol subsidy raise a fundamental question: is he seriously proposing an economic policy, or is he simply playing politics with the temporary discomfort Nigerians face?

The statement added that “Within a week, Nigerians have heard three different explanations of what an Atiku administration would do about petrol subsidy. The confusion has now become impossible to ignore.

First, Atiku’s spokesperson, Paul Ibe, said Atiku would restore petrol subsidy if elected president and later phase it out. Ibe described it as a temporary intervention intended to give Nigerians and businesses room to recover.

“Then came a clarification from another senior aide, Phrank Shaibu, who said Ibe’s statement was an “unauthorised and misleading characterisation” of Atiku’s position. According to Shaibu, Atiku would not set a predetermined date for ending the subsidy. Instead, it would remain until domestic refining expands, supply stabilises, competition deepens, and the market can deliver affordable prices without government support.

But just hours later, Atiku himself intervened and effectively overruled that clarification. He insisted that his position “has not changed” and that he would restore what he called a “targeted subsidy” if elected president. He also said, “I will restore targeted subsidy and put purchasing power back in the hands of Nigerians.”

This is not merely a matter of semantics. It is a serious policy contradiction.

If Atiku’s position has not changed, why did one of his principal aides say the subsidy would be temporary and phased out? Why did another senior aide have to publicly disown that explanation and introduce a completely different framework based on market conditions? And why did Atiku then step in to reaffirm the original position?

Nigerians deserve clarity, not policy by trial and error.

More fundamentally, Atiku’s argument appears to misunderstand the dynamics of the petroleum market. Petrol does not become cheap simply because government orders a subsidy or because competition is expected to emerge. Several factors, including international crude oil prices, exchange rates, refining costs, transportation, distribution, and other market costs, influence pump prices.

Competition can improve efficiency and margins, but it cannot magically insulate Nigeria from global crude oil prices or other input costs.

There is also a troubling oversimplification in Atiku’s argument that “when fuel rises, transport rises. When transport rises, food rises. When food rises, families suffer.” Of course, energy and transportation costs affect food prices. But petrol prices alone have never caused food inflation. Nigerians experienced rising food prices even during the years when petrol subsidy was in place.

Agricultural productivity, insecurity, exchange rates, logistics, storage, flooding, input costs, money supply and supply constraints also matter. A serious economic programme must address these factors, as President Bola Ahmed Tinubu has been doing for the past three years, rather than reduce the entire cost-of-living crisis to petrol prices.

We therefore urge Atiku to stop shifting positions and explain precisely what he means by “targeted subsidy”: how much will it cost, who will benefit, how will beneficiaries be identified, how will it be funded, and what objective economic conditions will determine its eventual termination?

Nigerians cannot afford another opaque and potentially costly subsidy regime dressed up in new language.

The former vice-president should be honest with Nigerians: either he has a coherent, costed, and workable petroleum policy, or he is simply playing politics with a policy that has significantly restored fiscal health to the three tiers of government and stabilised the macroeconomic environment.

The economy is too serious for policy somersaults, incoherence, destructive populism and election gimmicks.

Atiku says his subsidy will follow the barrel of crude. Is he aware that refined petrol only constitutes 45 per cent of the by-products of a refined barrel of crude? A barrel yields other products, such as aviation fuel, kerosene, and diesel, which were deregulated many years ago.

Diesel, which the Obasanjo-Atiku administration deregulated in 2004, accounts for roughly 25% of the barrel. Jet Fuel and Kerosene make up about 9% of the barrel. Kerosene and jet fuel were deregulated in 2009, and subsidies removed in 2016.

About 10% to 15% of the barrel creates base ingredients for synthetic rubber, nylon, polyester, and plastics used in everyday goods like toothbrushes, cups, and packaging.

Asphalt makes up about 2% to 4% of the barrel. Hydrocarbon Gas Liquids (HGL), like propane and butane, make up about 4%. Lubricants and Waxes constitute about 1% to 2%. Petroleum coke and sulfur form the solid residue left from refining.

Will Atiku subsidise all these by-products of the barrel as well, since kerosene is used by the underprivileged to cook, and many homes and factories use diesel to power generators and delivery trucks? And will he allow the refineries he will supply discounted crude oil to profit from 55 per cent of the by-products, while focusing subsidy only on petrol, his obsession?

The former Vice President is definitely suffering from a lack of basic understanding of his newfound policy prescription.

The post Presidency Slams Atiku Over Unclear Fuel Subsidy Proposal appeared first on Business Today NG.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Veritas Kapital CEO Nwakuche Joins Coal City University Governing Council

info

Published

on

BY NKECHI NAECHE-ESEZOBOR—The Managing Director/Chief Executive Officer of Veritas Kapital Assurance Plc, Dr. Adaobi Nwakuche, has  been appointed and inaugurated as a member of the Governing Council of Coal City University, Enugu, extending her leadership engagement into the higher education sector.

The Governing council, chaired by retired Lieutenant General Azubuike Ihejirika, former Chief of Army Staff, brings together professionals from diverse backgrounds to provide strategic direction and governance oversight for the institution.

Dr. Nwakuche’s appointment represents an opportunity to bring her enviable wealth is experience in Nigeria’s insurance industry to a higher education institution focused on academic development, institutional growth and the preparation of graduates for professional and entrepreneurial opportunities.

As MD/CEO of Veritas Kapital Assurance Plc, Dr. Nwakuche leads a Nigerian non-life insurance company in an industry where strategic decision-making, risk management, accountability and stakeholder engagement are essential to organisational performance.

Her participation in the university’s Governing Council extends this professional experience into a different institutional setting.

The Governing Council plays an important role in guiding the university’s strategic priorities, strengthening governance and supporting its long-term sustainability.

The participation of experienced professionals from the private sector can also foster cross-sector perspectives on institutional management, human capital development and organisational effectiveness.

Dr. Nwakuche’s appointment highlights the value of professional engagement beyond traditional industry boundaries and the role experienced leaders can play in supporting institutions across different sectors.

Veritas Kapital Assurance Plc congratulates Dr. Nwakuche on her inauguration and wishes her a successful and impactful tenure on the Governing Council of Coal City University.

The post Veritas Kapital CEO Nwakuche Joins Coal City University Governing Council appeared first on Business Today NG.

Continue Reading

Business

Nigerian govt speaks on Fitch’s credit rating

info

Published

on

Admin ajax 3 2.jpg

The Federal Government says Fitch Ratings’ decision to revise Nigeria’s credit rating outlook from Stable to Positive reflects progress in economic reforms, foreign exchange market adjustments and efforts to strengthen the country’s external position.

Fitch announced the revision on 9 October, retaining Nigeria’s long-term foreign-currency issuer default rating at ‘B’.

In a statement issued on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Fitch cited increased foreign exchange reserves, easing inflation and improved economic prospects among the factors supporting the outlook revision.

According to the minister, Nigeria’s gross foreign exchange reserves rose to $54.9 billion as of 25 September 2026, from $32 billion in mid-April 2024.

He attributed the increase to more formalised foreign exchange transactions, portfolio inflows, higher exports and remittances.

Fitch also projected that Nigeria would record a current account surplus equivalent to 6.4 per cent of gross domestic product in 2026.

PT WHATSAPP CHANNEL
Dangote Refinery AD

Economic growth and inflation

The ratings agency projected that Nigeria’s real gross domestic product would grow by 4.3 per cent in 2026, compared with 4 per cent in 2025, with growth remaining above 4 per cent in 2027 and 2028.

Fitch expects non-oil activities to remain the main driver of economic expansion.

The projection comes as Nigeria’s economy recorded growth of 4.43 per cent year-on-year in the second quarter of 2026, according to the National Bureau of Statistics (NBS).

The figure was higher than the 3.89 per cent recorded in the first quarter of 2026 and the 4.23 per cent recorded in the corresponding quarter of 2025.

The World Bank’s October 2026 Nigeria Development Update projected average annual economic growth of 4.4 per cent between 2026 and 2028, identifying services and agriculture among the contributors to economic activity.

On inflation, Fitch projected an average rate of 15.4 per cent in 2026, less than half the level recorded in 2024.

The NBS reported that Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026, from 15.43 per cent in July.

The figures provide recent context for Fitch’s assessment of inflation, although the agency’s annual average forecast is different from the monthly inflation rate reported by the NBS.

Reserves, oil production and public debt

Fitch also noted developments in Nigeria’s oil sector, including crude oil production meeting the country’s OPEC target of 1.5 million barrels per day from May 2026.

Mr Oyedele said increased domestic refining was helping to reduce fuel imports and foreign exchange demand.

On public finances, Fitch expects Nigeria’s tax reforms to increase non-oil revenue relative to the size of the economy.

The agency projected that general government debt would average 32 per cent of GDP between 2026 and 2028, below the median of 56 per cent for countries with a ‘B’ rating.

Fitch also highlighted Nigeria’s domestic debt market and the banking sector recapitalisation exercise, noting that many banks had capital adequacy ratios above 20 per cent.

However, the agency identified persistent challenges, including inflation remaining above levels in peer countries, government revenue being low relative to the size of the economy, and interest payments accounting for a high proportion of government revenue.

The minister said the federal government would continue implementing reforms aimed at increasing revenue, improving spending efficiency, strengthening debt management and supporting non-oil economic growth.

Other rating developments

The Fitch decision follows other developments in Nigeria’s international credit assessments.

READ ALSO: FG to negotiate ₦1,350 petrol price ceiling as global oil shock drives pump prices

In May 2026, S&P Global Ratings upgraded Nigeria’s credit rating from ‘B-’ to ‘B’. In August, Moody’s revised its outlook on Nigeria to Positive while retaining its ‘B3’ rating.

Mr Oyedele noted that the government’s medium-term objective remained to improve Nigeria’s credit standing and work towards investment-grade status.

He said the administration would continue to focus on foreign exchange market reforms, tax revenue mobilisation, fiscal governance, more efficient public spending and growth in non-oil sectors.

The minister said its broader objective was to “translate economic reforms into jobs, food security, support for small businesses and improved living standards”.


Discover more from Premium Times Nigeria

Subscribe to get the latest posts sent to your email.

Continue Reading

Trending