… Former Vice President Says Nigeria Should Support Local Refining Instead of Spending Scarce Resources on Fuel Imports
By Our Correspondent
Former Vice President Atiku Abubakar has renewed his call for a production-based subsidy in Nigeria’s petroleum sector, saying recent concerns surrounding crude supply and operating costs at the Dangote Refinery have further strengthened his position.
Atiku argued that Nigeria must rethink its approach to petroleum subsidies by moving away from policies that encourage dependence on imported refined products and instead supporting local production.
According to the former vice president, Nigeria’s enormous crude oil resources should be used to strengthen domestic refining and ensure that Nigerians benefit directly from the nation’s petroleum wealth.
His comments come amid growing discussions about the challenges facing domestic refiners, particularly the availability and pricing of crude oil needed to keep refineries operating efficiently.
Atiku believes the difficulties being highlighted by the Dangote Refinery demonstrate that simply having a large refinery is not enough. He maintained that domestic refiners need a supportive policy environment and reliable access to crude oil if Nigeria is serious about ending its dependence on imported petroleum products.
The former vice president wants government support directed toward refineries that produce petroleum products within Nigeria, rather than continuing to spend public funds primarily on making imported fuel affordable.
His proposal represents a significant shift from Nigeria’s traditional fuel-subsidy model. Under a production subsidy, government assistance would be tied to domestic output, with the aim of encouraging refineries to increase production while reducing the country’s exposure to international market shocks and foreign-exchange pressures.
Atiku argues that such a policy could strengthen Nigeria’s refining industry, create jobs, improve energy security and reduce the country’s dependence on imported petroleum products.
However, the proposal also raises questions about whether consumers would ultimately see the benefits. Any subsidy provided to refiners would need to be carefully monitored to ensure that government support translates into increased production, improved fuel availability and more affordable prices.
There would also need to be strong transparency and accountability to prevent the system from becoming another avenue for waste or abuse.
Nigeria is now at a critical point in the development of its petroleum sector. With major investments being made in domestic refining, the country has an opportunity to move away from the long-standing cycle of exporting crude oil while importing finished petroleum products.
For Atiku, the current debate is not simply about whether Nigeria should subsidise fuel. It is about what government should subsidise and who should ultimately benefit from the nation’s oil resources.
His position is clear: Nigeria should support domestic production, strengthen local refineries and ensure that the benefits of the country’s petroleum wealth reach ordinary Nigerians.
