The All Progressives Congress Presidential Campaign Council has challenged the legal, financial and operational basis of the African Democratic Congress presidential candidate Atiku Abubakar’s proposed production subsidy for locally refined petrol.

The APC-PCC questioned how the proposal would guarantee lower pump prices for Nigerians, arguing that the plan requires a clear legal framework, funding structure and mechanism to compel refiners receiving government support to pass the benefits to consumers.

The council made its position known in a statement issued on Sunday by its spokesperson, Dele Alake, in response to Atiku’s proposal announced at a press conference in Abuja on Friday.

According to the APC-PCC, Atiku’s proposal raises questions about its compatibility with the Petroleum Industry Act 2021, the cost of implementation and the safeguards that would be required to prevent diversion and smuggling.

The council cited Section 205(1) of the Petroleum Industry Act, which provides for the determination of wholesale and retail prices of petroleum products by free-market conditions.

“Section 205(1) of the Petroleum Industry Act 2021 provides that wholesale and retail prices of petroleum products should be determined by free-market conditions,” the council said.

The APC-PCC also referred to the position of the Nigerian Midstream and Downstream Petroleum Regulatory Authority that it does not fix petrol prices except under conditions permitted by law.

It consequently questioned how the proposed production subsidy would translate into cheaper petrol at filling stations if refiners receiving government support were not legally required to sell their products at predetermined prices.

“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations,” the council said.

The ruling party’s campaign council argued that without an enforceable mechanism, government could provide financial or other support to refiners while consumers continued to purchase petrol at prevailing market prices.

It also challenged Atiku to disclose the projected cost of the subsidy and identify the source of funding for the proposed intervention.

The council said a policy involving the sale of crude oil to domestic refineries at discounted prices could have implications for government revenue, including funds available for sharing among the Federal Government, states and local governments.

According to the APC-PCC, the proposal could cost between N17tn and N21tn annually, depending on the level of crude oil discount and the volume of crude covered by the arrangement.

The council further challenged Atiku to provide answers to seven issues, including the proposed subsidy rate, the annual spending limit, the source of funding, measures to prevent smuggling and diversion, and whether implementation of the policy would require an amendment to the Petroleum Industry Act.

The APC-PCC also questioned Atiku’s current position by referring to his previous support for the removal of petrol subsidy.

It recalled that Atiku had, during the 2022 election campaign, described the former subsidy regime as fraudulent and argued in favour of its removal.

“Atiku should explain why he now advocates restoring subsidy in another form and how his proposed arrangement would avoid the abuse, scarcity, smuggling and fiscal losses associated with the old system,” the statement said.

The council contrasted Atiku’s proposal with measures it said had been adopted by the administration of President Bola Tinubu, particularly the expansion of Compressed Natural Gas-powered transportation and electric mass transit as alternatives aimed at reducing transportation costs.

The APC-PCC also cited Tinubu’s recent remarks that more Nigerians would begin to experience reductions in transportation costs from October 1 through the National Affordable CNG Transit Programme.

The council maintained that any intervention in the downstream petroleum sector should have a clearly defined legal basis, transparent funding arrangements and mechanisms for measuring its impact on consumers.

It urged Atiku to publish a detailed policy document setting out the proposed subsidy mechanism, funding requirements and safeguards, alongside an independent legal and fiscal assessment.

“Until he does so, his production-subsidy plan remains an uncosted promise without a clearly identified legal or operational framework,” the APC-PCC said.