Former Vice-President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has accused the Federal Government of extending tax incentives and other benefits to oil companies while Nigerians continue to grapple with high petrol prices and rising living costs.
Atiku made the allegation in a statement issued on Sunday by his Senior Special Assistant on Public Communication, Phrank Shaibu.
He questioned the government’s decision to remove the petrol subsidy while continuing to provide tax credits, concessions and other incentives to investors in the petroleum sector.
“Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes,” Atiku said.
He argued that eligible deep offshore oil and gas projects could receive production tax credits of between $3 and $4.50 per barrel, with additional incentives potentially pushing the total benefit to $11.50 per barrel in some cases.
“So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?” he asked.
Atiku also challenged the claim that petrol subsidy had been completely eliminated, citing NNPC Limited’s audited accounts, which he said showed energy-security expenses and related shortfalls of about N4.84 trillion in 2023 and N7.13 trillion in 2024.
He said part of the expenditure was attributed to the difference between the exchange rate used in determining regulated petrol prices and the rate applicable when import obligations were settled.
“So, where exactly did the subsidy go? If Nigerians were paying market prices because ‘subsidy is gone’, why was the Federation still carrying trillions of naira in under-recovery and energy-security costs?” Atiku asked.
The former vice-president said the government should focus on the substance of the payments rather than what they were called, arguing that public funds were still being used to cover gaps between the cost and selling price of petrol.
Atiku said his proposed economic recovery programme would not restore the former subsidy regime, which he described as open-ended and opaque.
Instead, he proposed a targeted and capped intervention that would be properly budgeted and independently audited, alongside measures to boost local production, expand refining capacity, increase competition and improve household purchasing power.
“You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform,” he said.
Atiku also demanded greater transparency regarding tax credits, remissions and other incentives granted to petroleum companies, including information on beneficiaries, the revenue involved and the investments delivered in return.
He said Nigerian investors should also have fair and transparent access to similar incentives.
According to him, the success of economic reforms should ultimately be measured by whether they improve citizens’ living standards rather than by how much hardship Nigerians can endure.
Atiku had last week pledged to restore petrol subsidy if elected president in 2027. President Bola Tinubu subsequently criticised the proposal, describing Atiku as “ignorant of governance and the economy.”
