Onanuga Faults Atiku’s Fuel Subsidy Promise

….Says Nigeria Cannot Return to Old Regime

Presidential spokesman Bayo Onanuga has criticised former Vice President Atiku Abubakar’s proposal to restore petrol subsidy if elected president, describing the policy as a costly and unsustainable return to Nigeria’s past.

Onanuga, who is Special Adviser to President Bola Tinubu on Information and Strategy, said Atiku’s position represented a reversal of his earlier stance on petrol subsidy removal and questioned how the proposed policy would be financed.

According to him, the former subsidy regime placed a huge burden on government finances and was eventually dismantled under the petroleum-sector reforms introduced through the Petroleum Industry Act (PIA).

He argued that restoring subsidy would require more than a political announcement, noting that government would have to establish a legal, fiscal and administrative framework for funding and implementing the policy.

Onanuga also challenged claims that the removal of subsidy had created a N30 trillion “windfall” or savings, saying subsidy was effectively the cost government absorbed when petrol was sold below its economic cost.

He maintained that Nigeria’s petroleum sector had changed significantly since 2023, particularly with the expansion of domestic refining capacity.

The presidential aide cited the Dangote Refinery and other local refineries as evidence that Nigeria was gradually moving away from dependence on imported refined petroleum products.

He warned that returning to a subsidised market could undermine domestic refining and discourage investments in local production.

Onanuga further argued that the resources previously used to support petrol price discounts could now be channelled to the three tiers of government for infrastructure, salaries and other public services.

He said the government was also pursuing alternative measures to reduce the impact of high petrol prices on Nigerians, including the promotion of Compressed Natural Gas (CNG), which he said could significantly reduce transportation and energy costs.

“Political promises must be backed by fiscal arithmetic,” Onanuga said, challenging Atiku to explain the annual cost of his proposed subsidy programme, its funding source and whether borrowing would be required.

He also asked whether the National Assembly would be expected to amend existing provisions of the PIA to accommodate a return to petrol subsidy.

Onanuga said Nigerians deserved clarity on what exactly would be subsidised under Atiku’s proposal, particularly now that the country had substantially increased its domestic refining capacity.

He urged political actors to engage in a robust debate on the cost of living and economic policy but insisted that such discussions must reflect Nigeria’s current petroleum and fiscal realities.

According to him, Nigeria should pursue sustainable measures that lower energy costs and improve living conditions rather than return to a system whose financial burden could eventually translate into higher debt, reduced public spending and pressure on the national currency.