ABUJA, Nigeria — The Nigerian Presidency rejected a proposal by former Vice President Atiku Abubakar to subsidise crude oil for local refineries on Sept. 12, 2026, stating that a similar policy failed during his tenure in office.
The Senior Special Assistant to President Bola Tinubu on Digital and New Media, Otega Ogra, made the statement in response to Atiku Abubakar, who advocated for a production subsidy to support domestic refining operations.
Golden Info reports that Otega Ogra stated the production subsidy model was previously implemented while Atiku Abubakar served as vice president under former President Olusegun Obasanjo, resulting in reduced refinery capacity utilisation across the country.
Data released by the Presidency showed that operational capacity at the Warri Refining and Petrochemical Company fell to 14.27% in 2003 and 9.1% in 2004. During the same period, capacity utilisation at the Kaduna Refining and Petrochemical Company stood at 15.96% in 2003 and 26% in 2004, while the Port Harcourt Refining Company recorded a decline from 60.73% in 2001 to 31.04% in 2004.
Otega Ogra said the premium motor spirit retail price more than tripled by 2004 despite the subsidy arrangement for domestic refiners.
The Presidency noted that former President Olusegun Obasanjo cancelled the crude discount through presidential directive PRES/158 on Oct. 9, 2003, instructing the Nigerian National Petroleum Corporation to pay full international market prices for refinery crude supply.