2027: Atiku Plans Cheaper Crude for Dangote, Other Local Refineries — Amaechi

 

The Vice-Presidential Candidate of the African Democratic Congress (ADC), Rotimi Amaechi, has explained how an Atiku Abubakar-led administration would introduce a production subsidy aimed at reducing the cost of locally refined petrol in Nigeria.

Amaechi spoke during an ADC town hall meeting in Edo State, where he outlined the proposed approach to domestic crude pricing and local refining.

According to him, the proposed policy would be different from the former petrol subsidy system, as the intervention would focus on supporting production by refineries operating in Nigeria rather than subsidising imported fuel.

Amaechi explained that under the proposed arrangement, crude oil would be sold to eligible domestic refineries at a price below the international market price, with the difference effectively serving as the production subsidy.

Using a hypothetical example, he said if crude oil was valued at N15,000 on the international market, the government could sell it to a domestic refinery such as the Dangote Refinery at N10,000.

The N5,000 difference, he explained, would represent the subsidy component and would reduce the cost of production for the refinery.

He said the policy would encourage domestic refining and ultimately bring down the price of petroleum products, with possible effects on transportation and the wider cost of living.

Amaechi stressed that the proposed subsidy would be targeted at refineries operating within Nigeria, rather than supporting the importation of refined petroleum products.

He also explained that the arrangement would not be limited to the Dangote Refinery, saying modular refineries that meet the requirements would also be eligible to benefit from the policy.

The ADC chieftain said the proposed model would also encourage investment in domestic refining and create employment opportunities through the construction and operation of refineries.

Amaechi has previously said an Atiku administration would seek an amendment to the Petroleum Industry Act if existing legislation prevents the implementation of the production subsidy. He maintained that any changes required would be pursued through the National Assembly and within the law.

The proposal is part of the ADC's broader economic agenda ahead of the 2027 presidential election, with Atiku previously describing the planned intervention as a capped and budgeted production subsidy tied to verified petroleum products refined locally.

However, questions have been raised about the financial implications, eligibility criteria and mechanisms for ensuring that the benefit of cheaper crude supplied to domestic refiners is ultimately reflected in pump prices for consumers.