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Presidency Knocks Atiku Over Fuel Subsidy, Accuses Former VP of Policy U-Turn

Bayo Onanuga criticises Atiku Abubakar over his fuel subsidy position

ABUJA — The Presidency has criticised former Vice President Atiku Abubakar over his recent comments on fuel subsidy, accusing him of changing his position several times within one week and failing to present a clear plan on how the policy would work.

The latest exchange has added a fresh political angle to the long-running debate over fuel prices, refinery output and the cost of living in Nigeria.

In a statement issued on Wednesday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said statements from Atiku's camp had created confusion over what the former vice president actually supports.

According to Onanuga, Atiku's team presented three different positions on fuel subsidy within the space of one week.

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He said Paul Ibe, a spokesperson for Atiku, initially indicated that the subsidy could be restored before being gradually removed. Another member of Atiku's media team, Phrank Shaibu, later described that position as unauthorised and said subsidy should remain until domestic refining capacity improves.

Atiku himself subsequently spoke about the need for what he described as a “targeted subsidy”, prompting the Presidency to question what exactly the proposal means and how it would be financed.

Presidency Questions Atiku's Subsidy Plan

Onanuga challenged the former vice president to explain the details behind the targeted subsidy proposal.

He asked questions about who would benefit from such a scheme, how much it would cost the government and where the money would come from.

The questions are central to the debate because Nigeria has already spent years dealing with the financial pressure linked to fuel subsidy payments.

The federal government removed the petrol subsidy in 2023, a move that caused fuel prices to rise sharply but was defended by the administration as necessary to reduce pressure on public finances and free money for other areas of the economy.

Since then, fuel prices and the cost of living have remained major issues for households and businesses across the country.

Transport costs, food prices and other expenses have risen, making petrol policy one of the issues likely to attract strong public attention as political parties prepare for the 2027 elections.

Three Positions In One Week

The Presidency's main criticism is not only about whether subsidy should return but also about the different statements coming from Atiku's camp.

Onanuga argued that the changes showed a lack of policy clarity and suggested that the issue was being used for political advantage.

The Presidency said the country could not afford what it described as policy somersaults on an issue with such a direct effect on the national economy.

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For the federal government, the removal of subsidy was presented as a difficult but necessary decision. Officials have repeatedly argued that keeping the old system was becoming too expensive for the government and created room for leakages and other problems.

Atiku and other critics of the policy have, however, continued to question the way the subsidy removal was handled and its effect on ordinary Nigerians.

The former vice president has also argued that government should take steps to protect Nigerians from the effect of high fuel prices, particularly while domestic refining capacity is still developing.

What Does “Targeted Subsidy” Mean?

The latest disagreement has also raised a wider question about what a targeted fuel subsidy would look like in practice.

A broad subsidy lowers the price of petrol for everyone, regardless of income or level of consumption. A targeted system, on the other hand, would seek to provide support to selected groups or consumers considered most affected by high fuel costs.

But such a plan would require clear rules.

Government would have to decide who qualifies, how payments or price support would be delivered and how the system would be monitored. It would also need to determine how much public money would be committed to the programme.

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These are the questions the Presidency wants Atiku to answer before his proposal can be properly assessed.

Without clear details, the argument over subsidy could remain largely political, with different sides presenting positions that appeal to different sections of the public.

Fuel Prices Remain A Major Concern

For millions of Nigerians, however, the political argument is closely tied to the daily cost of living.

Petrol remains important to transportation, small businesses and household activities. When fuel prices rise, the impact can spread quickly to transport fares, food distribution and the cost of goods and services.

This is why any discussion about subsidy is likely to attract strong public interest.

Supporters of subsidy argue that government should provide relief when fuel prices become too high for ordinary Nigerians to afford. Critics counter that spending large sums to keep petrol prices artificially low can place a heavy burden on public finances.

The challenge for any government is finding a system that provides relief without creating another large and difficult-to-manage financial obligation.

Domestic Refining At The Centre Of Debate

The question of local refining has also become an important part of the argument.

Nigeria has long depended heavily on imported petroleum products despite being a major oil-producing country. The growth of domestic refining capacity has therefore been seen as an important step towards reducing exposure to international fuel prices and foreign exchange pressures.

The expansion of domestic refining has changed the conversation around petrol supply, but questions remain about production levels, distribution and the final price paid by consumers.

Atiku's camp has linked its position on subsidy to the need for stronger domestic refining. The Presidency, however, wants the former vice president to provide a clearer explanation of how his proposed subsidy arrangement would operate during the transition.

2027 Politics Adds To The Debate

The dispute comes as political activities ahead of the 2027 general elections continue to build.

Fuel prices are expected to remain a major campaign issue because of their connection to household income, transportation and inflation.

Any political proposal that promises cheaper petrol is therefore likely to receive public attention. At the same time, Nigerians are increasingly interested in how such promises would be funded and whether they can be sustained beyond the election period.

The Presidency's criticism of Atiku reflects this wider political contest.

Onanuga accused the former vice president of engaging in what he described as destructive populism and warned that economic policy should not be driven by short-term political calculations.

The statement effectively challenges Atiku to move beyond the promise of subsidy relief and explain the practical details behind the proposal.

Atiku's Position Under Fresh Scrutiny

The former vice president's latest position has now placed greater attention on the meaning of targeted subsidy and whether it represents a change from his earlier statements.

For Atiku's supporters, the focus is likely to remain on the hardship Nigerians face as a result of high fuel prices and the need for government to offer relief.

For the Presidency, the focus is on fiscal discipline, policy consistency and the danger of returning to a subsidy system that it says placed too much pressure on government finances.

The disagreement therefore goes beyond the statements exchanged between politicians. It touches on one of Nigeria's most difficult economic questions: how to keep energy affordable without creating an unsustainable burden on public funds.

What Happens Next?

As the political debate continues, Nigerians are likely to demand more details from both sides.

If Atiku is proposing a targeted subsidy, the public will want to know who qualifies, how much support would be provided, how long the programme would last and how it would be paid for.

The government, meanwhile, will have to continue explaining the benefits of its current approach and show how domestic refining, market reforms and other measures can eventually reduce pressure on consumers.

The latest exchange shows that fuel policy is likely to remain a major political issue ahead of 2027. Beyond political accusations, the key question for Nigerians will be whether any proposed solution can reduce the cost of living while protecting the country's finances.

For now, the Presidency says Atiku's changing statements have raised more questions than answers. The former vice president and his team may now face increased pressure to provide a single, detailed position on what they would do differently if given the opportunity to lead the country.

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