Fuel price subsidy: Tinubu’s presidency turned Dangote model into campaign strategy – Atiku

Former Vice President, Atiku Abubakar said President Bola Ahmed Tinubu’s administration had turned Dangote’s business model into a campaign strategy.

He made the claims in a statement issued by his spokesperson, Phrank Shaibu, on Friday.

Atiku said Dangote Refinery was right to insist that a private refinery cannot be forced to absorb losses created by government-imposed prices, but said the Presidency was being deliberately dishonest by pretending that this was what his plan proposed.

“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 the 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.

“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,” he stated.

DAILY POST reports that Atiku had proposed restoring fuel subsidy, but Tinubu, the presidential candidate of the Nigeria Democratic Congress, Peter Obi have kicked against the proposal.