Former Vice President Atiku Abubakar has said Dangote Refinery’s warning against government-imposed pump prices validates, rather than undermines, his proposal for a production subsidy on petrol.

Atiku, in a statement issued on Friday by his Senior Special Assistant on Public Communication, Phrank Shaibu, accused the Tinubu administration of deliberately misrepresenting his proposal in an attempt to discredit it.

The former Vice President said Dangote Refinery was right to oppose any arrangement that would compel a private refinery to sell below cost, stressing that his proposal was not designed to impose losses on domestic refiners.

“Dangote raised a legitimate business concern. The Presidency turned it into a campaign of fear.

“A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses. That would be reckless, economically destructive and unfair to any private investor.

“But that is precisely why our proposal is different.

“We are restoring subsidy through a production subsidy model, not an import subsidy model.

“The difference is simple enough for every Nigerian to understand. Import subsidy spends public money supporting petrol refined abroad and brought into Nigeria. Production subsidy supports crude refined here in Nigeria so that Nigerian refineries can produce fuel more cheaply and Nigerians can pay less.

“Think of it like rice. If government wants rice to become cheaper, it has two choices: spend money making imported rice cheaper, or help Nigerian farmers reduce the cost of producing rice at home. The second option lowers prices while also creating jobs, strengthening local businesses and keeping economic activity in Nigeria.

“That is exactly what we are proposing for fuel.

“We are restoring subsidy, but moving it from importation to production.

“The subsidy follows the barrel refined in Nigeria.”

Atiku said his proposal would lower the cost of crude supplied to qualifying domestic refineries through a transparent and independently verified mechanism.

“If the crude entering a refinery becomes cheaper, the cost of producing petrol should also come down. That reduction should then reach the average Nigerian while preserving legitimate refining costs and a reasonable commercial margin.

“There is a clear difference between helping a producer reduce costs and forcing that producer to sell at a loss.

“The Tinubu Presidency knows this. If it pretends otherwise, then it is not confused. It is deliberately misleading Nigerians.”

He accused the government of wrongly equating subsidy with dependence on imported petroleum products.

“Under our plan, support will be tied strictly to crude refined in Nigeria. Nigerian refineries will benefit. Nigerian workers will benefit. Nigerian businesses will benefit. Nigerian consumers will benefit.

“If you do not refine in Nigeria, you do not qualify.

“This is not a subsidy for foreign refineries. It is not a subsidy for importers. It is not a subsidy for middlemen.

“It is a subsidy for Nigerian production.”

Atiku said the Presidency’s response to Dangote’s concerns demonstrated what he described as the government’s desperation to defend its economic policies amid rising living costs.

“Dangote raised concerns about margins, price controls and policy uncertainty. The Presidency somehow converted that into a prophecy that the economy would collapse.

“That is not economics. It is melodrama from the Villa.

“A refinery warning that it should not be forced to sell at a loss is not the same as saying that government must never support domestic production.

“In fact, the warning proves why the intervention must be intelligently structured.

“Our policy does exactly that.”

He said any additional relief beyond the savings from lower crude-input costs should be transparently funded by the government rather than imposed on refiners.

“If government wants to provide additional relief beyond what lower crude-input costs can sustainably deliver, then government must pay for that relief openly.

“It must be budgeted. It must be capped. It must be audited. Nigerians must know exactly what is being spent and what they are receiving in return.

“You cannot announce a politically convenient petrol price and quietly dump the cost on the refinery.

“That is not policy. That is confiscation by another name.”

Atiku said his proposed production subsidy would be subject to safeguards, including a fiscal ceiling, a maximum support level per barrel, independent verification of crude supplied, electronic tracking of crude intake and refined output, domestic-supply obligations, transparent pricing and independent audits.

“We will know how many barrels receive support, which refinery receives them, what is produced, what it costs the taxpayer and what benefit Nigerians receive.

“No mystery barrels. No endless claims. No blank cheques.”

He said protecting the viability of domestic refineries was essential to attracting further private investment into Nigeria’s refining sector.

“Dangote Refinery, modular refineries and other Nigerian investments must remain viable. We want more refineries, more investment, more competition and more refining capacity.

“But the Nigerian consumer must also benefit from the fact that this country produces crude oil.

“We reject the false choice between a profitable refinery and an affordable pump price.

“A competent government should be able to protect both the producer and the consumer.”

Atiku also criticised the Tinubu administration over the rising cost of living, saying Nigerians had repeatedly been asked to endure the consequences of government policies.

“For three years, Nigerians have been told to endure.

“Fuel rises, they say endure. Transport rises, endure. Food rises, endure. Businesses are crushed by energy costs, endure. Household incomes collapse, endure.

“Every new hardship is presented as proof that reform is working.

“Then we propose a production subsidy that will reduce the underlying cost of making petrol in Nigeria, and suddenly the Presidency predicts catastrophe.

“What kind of government is terrified by a policy designed to make production cheaper and life more affordable?”

He further accused the administration of inconsistency in its approach to government intervention in the economy.

“So intervention is acceptable when government gives waivers and concessions to powerful interests, but it suddenly becomes dangerous when the objective is to reduce the cost of fuel, transport and food for ordinary Nigerians?

“That is not economic principle. That is selective compassion.

“Our proposal is clear: support domestic production, reduce the cost of crude going into Nigerian refineries, protect legitimate refinery margins and ensure that lower production costs translate into lower costs for Nigerians.”

Atiku urged the Presidency to debate his proposal based on its actual content rather than what he described as a distorted version of it.

“We have been clear from the beginning.

“We are restoring subsidy through a production model.

“We are proposing a production subsidy not an import subsidy. We are not proposing to subsidise petrol refined abroad. We are not proposing to force Dangote or any other Nigerian refinery to sell below cost.

“We are proposing targeted support for crude refined here in Nigeria so that domestic refineries can produce more competitively, expand capacity, create jobs and sell fuel at a price Nigerians can better afford.

“If the Presidency wants a debate, let us have the debate.

“But let it first stop lying about what we are proposing.”

Atiku maintained that Dangote Refinery’s position was compatible with his proposal because both recognised the need to protect domestic refiners from unsustainable losses while making petroleum products more affordable.

“Dangote is right that a refinery should not be forced to carry the burden of an artificially imposed price. We agree.

“Nigerians are also right that the present cost of fuel, transportation, food and doing business has become unbearable.

“Our production subsidy answers both concerns.

“It protects refinery viability while reducing the cost of producing fuel in Nigeria.

“That is the choice before the country: continue with a system in which Nigerians pay more and government merely explains their suffering, or move to a production model that deliberately lowers costs and puts money back into people’s pockets.

“We choose production.

“We choose Nigerian refining.

“We choose Nigerian jobs.

“We choose affordability.

“Subsidise Nigerian production, not foreign importation. Produce here. Refine here. Create jobs here. Pay less here.

“That is the Atiku production subsidy model, and no amount of propaganda from the Tinubu Presidency can change what it is.”