NEWS
Fuel Discount: Presidency Explains Why Atiku’s Production Subsidy Proposal May Fail
The Presidency has explained why former Vice President Atiku Abubakar’s proposed production subsidy for locally refined petrol could be difficult to implement, arguing that Nigeria lacks sufficient freely available crude oil to sustain the policy.
President Bola Tinubu’s Special Adviser on Media and Public Communications, Sunday Dare, made the position known in a statement issued on Sunday, October 11, 2026, titled “Atiku’s Demagoguery in the Face of Tinubu’s Logical Policies.”
Dare was responding to Atiku’s criticism of the Federal Government’s 30-day petrol discount offered through the Nigerian National Petroleum Company Limited (NNPC) Retail and its proposed fuel price modulation framework.
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Atiku had described the temporary discount as a publicity stunt, questioning its sustainability and accusing Tinubu of adopting his economic proposal without incorporating the production subsidy he advocated.
However, the presidential aide argued that Atiku’s proposal failed to adequately account for Nigeria’s crude oil production arrangements, existing contractual obligations and the financial implications of subsidising petroleum products.
According to Dare, Nigeria produces approximately 1.8 million barrels of crude oil daily, but the Federal Government does not have unrestricted access to the entire volume.
He said joint ventures and production-sharing contracts, alongside production costs, royalties and profit-sharing arrangements, significantly reduce the quantity of crude available to the state.
“After accounting for these statutory and contractual obligations, Nigeria has fewer than 700,000 barrels per day of unencumbered ‘free crude’ to give away,” Dare stated.
He argued that using crude oil to fund a broad production subsidy without sufficient freely available supplies could undermine government revenues and expose the country to financial risks.
Dare maintained that domestic refineries, including the Dangote Petroleum Refinery, require substantial volumes of crude oil, making it difficult for the government to meet their needs solely from crude available for unrestricted allocation.
He argued that domestic refiners would still need to obtain additional crude through other arrangements, including purchases from international markets.
The presidential aide warned that a production subsidy without adequate crude supplies and clearly defined financial safeguards could recreate some of the problems associated with Nigeria’s former petrol subsidy regime.
He said such a policy could encourage opaque transactions, fraudulent claims and financial losses if its implementation was not properly structured.
Atiku has advocated shifting government support away from subsidising imported petrol towards supporting qualifying domestic refiners through preferential crude oil pricing, with the aim of reducing costs for consumers.
The proposal has become a subject of political and economic debate as Nigerians continue to grapple with high petrol prices and the wider cost-of-living crisis.
Presidency Defends 30-Day Petrol Discount
Dare also rejected the suggestion that NNPC Retail’s decision to forgo its profit margin temporarily amounted to a restoration of the former petrol subsidy.
He said the discount was initially introduced as part of activities marking Nigeria’s 66th Independence anniversary before being extended for another 30 days.
According to him, the arrangement allows NNPC Retail to absorb short-term market pressures without reinstating the previous system of government-funded fuel subsidies.
The presidential aide also defended the proposed N1,350-per-litre ceiling on ex-gantry costs, describing it as a mechanism to moderate sudden increases in fuel prices.
Under the framework outlined in the statement, refiners and importers would absorb temporary cost increases above the ceiling and recover those costs when market conditions improve.
Dare argued that the measure could help reduce the impact of abrupt fuel price changes on transport fares and household expenses.
The presidential aide further defended the administration’s broader economic reforms, including petrol subsidy removal and foreign exchange market reforms introduced in 2023.
He cited the expansion of compressed natural gas infrastructure, direct cash transfers to vulnerable households, support for small businesses and increased federal allocations to states and local governments as part of the government’s response to economic pressures.
Dare maintained that the administration was pursuing a combination of market-based pricing and targeted interventions to manage the effects of international oil market volatility.
He argued that the country needed structural economic measures rather than temporary interventions that could place additional pressure on public finances.
To secure a bright energy for her teeming population, Nigeria must sustain the momentum of reform, accelerate investment, and deepen partnerships.
This view was expressed by Managing Director, Shell Nigeria Exploration and Production Company of Nigeria Limited (SNEPCo) Ronald Adams in Lagos at the weekend.
Delivering a keynote address at the Africa Energy Conference (AEC) of the Lagos Business School (LBS), Adams called for regulatory certainty through efficient execution of reforms, sustained investment appeal to enable projects to move more swiftly from opportunity to production and partnership by operators, regulators, NNPC Limited and communities to unlock the full value of Nigeria’s resources.
Adams cited Nigeria’s huge oil and gas resources as an advantage but pointed out: “Resources alone do not guarantee prosperity. Prosperity comes when resources are matched with investment, technology, sound policy and disciplined execution. Success will be determined not by the size of our resources, but by our ability to convert them into investment and economic growth.”
Adams pledged the support of Shell towards a bright energy future of Nigerians. He said: “For more than six decades, Shell has been part of Nigeria’s energy journey. Together with our partners, we have helped develop major energy infrastructure, supported Nigerian businesses, invested in talent, and contributed to economic development. Bonga remains a powerful example of what technology, partnership and Nigerian capability can achieve in deepwater operations. Today, that story continues through Bonga North.”
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Issuing a clarion call for action by all stakeholders, he added: “The world is not standing still. Capital is moving, technology is advancing and competition is intensifying. The countries that attract investment tomorrow are those that improve competitiveness today. Nigeria has begun that journey. Our task is to sustain the momentum and translate reform into projects, projects into growth, and growth into shared prosperity.”
The conference, the 4th in the series had at its theme; “Securing Nigeria’s Energy Future: Policy Reform, Capital Mobilisation, and Pathways to a Sustainable Power and Energy Market” and was attended by top government officials, industry captains, energy professionals, and students.
Lagos State Deputy Governor Obafemi Hamzat represented Lagos State Governor Babajide Sanwo-Olu as the guest of honour. SNEPCo was a principal sponsor of the Africa Energy Conference (AEC) and mounted a well-received exhibition on its deepwater operations and social investments across Nigeria.
Katsina State Governor, Dikko Umaru Radda, has flagged off the disbursement of ₦689.79 million in bursary payments to 19,318 continuing students across 97 institutions for the 2025/2026 academic session.
The disbursement follows a 100 per cent increase in academic bursary rates, marking the first adjustment since 2007.
The latest payment forms part of the state government’s broader investment in education and student welfare, with cumulative bursary disbursements and related student awards under the administration reaching ₦3.29 billion.
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More than 174,000 beneficiary payments have been recorded across successive payment cycles.
Increased Allowances for Veterinary and Law Students
Under the revised scholarship support framework, allowances for Veterinary Medicine students have increased by 150 per cent for students in the 300 and 400 levels and by 200 per cent for those in the 500 and 600 levels.
Support for Nigerian Law School students and academic excellence awards has also continued.
The state government has also approved a scholarship programme for 1,700 students, with 50 beneficiaries drawn from each of the state’s 34 local government areas.
The programme is designed to support tuition fees, registration and other educational expenses.
₦6bn Scholarship Trust Fund
The government has made provision for ₦6 billion in seed funding for a scholarship trust fund intended to strengthen educational financing.
The fund is expected to support specialised scholarship opportunities in fields including engineering, medicine, Artificial Intelligence and mechatronics.
The state’s foreign scholarship initiatives have also supported 118 students studying Medicine, Artificial Intelligence and Bioengineering in Egypt, Ethiopia and China, with approved educational and living expenses covered by the government.
More Scholarship Opportunities
Other educational support initiatives include 34 maritime scholarship beneficiaries and seven students receiving 50 per cent financial support at the Nigerian College of Aviation Technology, Zaria.
The state has also nominated 34 candidates for MBBS studies in Russia, identified 70 prospective master’s degree candidates and selected 10 candidates for Qur’anic Sciences scholarships in Ghana.
These initiatives form part of the state’s broader efforts to expand access to education across different fields and levels of study.
Scholarship Board Strengthens Accountability
The Katsina State Scholarship Board has also strengthened its application, verification and payment systems.
As part of its accountability measures, the board interviewed more than 14,925 fresh applicants and returned approximately ₦86 million in unclaimed funds to the state government.
The state also acknowledged the contributions of the Nigerian Education Loan Fund (NELFUND), the Tertiary Education Trust Fund (TETFund) and the National Information Technology Development Agency (NITDA) in expanding access to educational financing and digital learning resources.
Radda Inaugurates Tinubu/Dikko Education Beneficiary Network
As part of the activities, Radda inaugurated the Tinubu/Dikko Education Beneficiary Network (TDEBNET), a voluntary organisation comprising parents and beneficiaries of educational programmes.
Members of the organisation expressed support for the re-election bids of Radda and President Bola Ahmed Tinubu in 2027.
Federal agents raided the Washington, D.C., home of Democratic Congresswoman Ilhan Omar early Monday morning as part of an ongoing federal criminal investigation, the United States Department of Justice (DOJ) has confirmed.
Homeland Security Investigations agents arrived at the Minnesota congresswoman’s residence at about 6:00 a.m. Eastern Time, according to a report by Fox News.
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The report said both the Department of Homeland Security (DHS) and the DOJ are involved in the investigation.
A DOJ spokesperson confirmed the operation, stating: “Today in the Washington, D.C. area, Homeland Security Investigations executed a judicially authorized search warrant secured by the Department of Justice.”
The spokesperson added: “This enforcement action is part of an ongoing federal criminal investigation.”
Details later……….
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