Former Vice-President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has accused the Federal Government of giving generous tax incentives and other benefits to oil companies while Nigerians continue to face 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 rationale behind President Bola Tinubu’s removal of the petrol subsidy, arguing that the government still provides tax credits, concessions and other incentives to petroleum investors.

According to Atiku, eligible deep offshore oil and gas projects can receive production tax credits of between $3 and $4.50 per barrel, while other incentives could raise the total benefit to as much as $11.50 per barrel in some cases.

“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 also challenged the claim that petrol subsidies had been completely abolished, citing NNPC Limited’s audited accounts, which he said showed energy-security expenses and related shortfalls rising from about N4.84 trillion in 2023 to N7.13 trillion in 2024.

Atiku said NNPC attributed part of the expenses to differences between the exchange rate used to determine regulated petrol prices and the rate applied 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?” he asked.

The former vice-president argued that regardless of what the payments are called, public funds were still being used to cover the gap between the cost of petrol and its selling price.

Atiku said his proposed economic recovery programme would not return Nigeria to the former subsidy system, which he described as open-ended and opaque. Instead, he proposed a targeted and capped intervention that would be properly budgeted and independently audited.

He said the policy would be tied to increased local production, greater refining capacity, improved competition and measures to restore Nigerians’ 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 in the tax credits, remissions and other incentives granted to companies in the petroleum sector, including information on the beneficiaries, revenue involved and 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 Nigerians’ living standards, rather than by how much hardship citizens are able to endure.

Atiku had last week said he would restore petrol subsidy if elected president in 2027. Tinubu subsequently criticised the proposal, describing Atiku as “ignorant of governance and the economy.”

Atiku Accuses Tinubu Govt of Favouring Oil Companies Over Nigerians

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