Petrol discount: Tinubu takes a cue from other world leaders — Presidency

…dismisses Atiku’s production subsidy as “economic illiteracy”

The Presidency has again defended the discounted petrol price announced last Thursday by the Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, saying President Bola Tinubu is taking a cue from other world leaders who have introduced measures to cushion the effects of disruptions in crude oil supply.

The defence followed remarks by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, who described the announcement as panic-driven.

In a statement on Sunday, the Special Adviser to the President on Media and Public Communications, Sunday Dare, said the President was following the example of world leaders who had taken measures to ease the impact of tensions in the Middle East on crude oil supplies and refined petroleum prices.

He said: “In the United Kingdom, because the international oil market affects local pump prices, Prime Minister Andy Burnham offered Britons a Google Maps link to find the best gas prices. Google Maps’ Fuel Prices feature helps drivers compare near-real-time petrol and diesel prices at local forecourts.

“In America, President Trump signed an executive order titled “Emergency Tax Relief on Diesel Fuel” on October 5, 2026 and announced a diesel supply deal with Russia, not minding if it derails his avowed commitment to end the Russia-Ukraine war.

“In close to 10 other countries, leaders are employing various means to provide relief for citizens. But in Nigeria, a President offers the same, and a misguided presidential candidate chooses to dance on the sufferings of Nigerians and exploit it for political gains.”

Dare also faulted Atiku’s call for the administration to introduce what he described as a “production subsidy” by supplying crude oil to local refineries at discounted rates.

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He argued that the Federal Government was constrained by contractual obligations with international oil companies under joint venture agreements covering crude oil exploration and supply to the international market.

Dare said: “As Coordinating Minister of the Economy and Minister of Finance Taiwo Oyedele clearly articulated on Channels TV, Nigeria currently produces about 1.8 million barrels of crude oil per day (bpd) for a population of over 200 million people. Simplistic populists like Atiku deliberately deceive citizens by pretending that the Federal Government directly owns all 1.8 million barrels and can distribute or discount them at will.

“Under complex Joint Ventures (JVs) and Production Sharing Contracts (PSCs) signed over decades, production costs, royalties, and profit-oil sharing ratios severely reduce the equity crude available to the state. After accounting for these statutory and contractual obligations, Nigeria has fewer than 700,000 barrels per day of unencumbered “free crude” to give away.

“Mega-refineries like the Dangote Petroleum Refinery require immense daily feedstock that far exceeds what the state can freely provide without breaching existing international supply contracts or bankrupting national revenues.

“Consequently, Dangote and other domestic refiners must supplement local supplies by importing crude from international markets.

“To propose a blanket “targeted production subsidy” on crude without the physical, unencumbered volume to back it up is pure economic illiteracy. It invites the very opacity, fraudulent round-tripping, and fiscal haemorrhage that crippled Nigeria for decades under the old subsidy regime.

“As Minister Oyedele noted, comparing local crude allocation to local agricultural produce like garri or cassava—a misleading analogy popularised by media commentary—is a fundamental misrepresentation of global commodity markets and contractual energy economics. For Atiku to suggest that Nigeria can fund unlimited production subsidies without bankrupting the state is either financially reckless or fundamentally dishonest.”

The Presidency maintained that the proposed production subsidy would be difficult to implement without sufficient crude oil available to the government after existing contractual obligations had been met.