The Presidency has rejected calls by former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to restore petrol subsidy, insisting that the government will not reverse the policy.
The Presidency warned that bringing back the subsidy would undermine reforms already carried out in the petroleum sector, create fresh legal and fiscal complications and potentially discourage investment in domestic refining.
Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, stated this while reacting to Atiku’s proposal to reintroduce a form of petrol subsidy if elected president in 2027. 
Onanuga described the proposal as “retrogressive” and fiscally unsustainable, accusing Atiku of seeking to reverse reforms in an attempt to gain political advantage ahead of the 2027 elections.
According to him, Nigeria’s petroleum sector has undergone fundamental changes since Tinubu announced the removal of petrol subsidy on May 29, 2023.
He argued that restoring the subsidy could undermine investments in local refining, including the Dangote refinery and a growing number of modular refineries.
N15.8trn generated since subsidy removal
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the removal of petrol subsidy generated about N15.8 trillion in resources for the federation between June 2023 and December 2025.
Oyedele said the Federal Government received N5.4 trillion from the additional resources, while N10.4 trillion was shared among state and local governments.
President Tinubu has also criticised Atiku’s proposal, describing it as evidence of what he called the former vice president’s lack of understanding of governance and economic management.
Tinubu made the remarks while receiving Osun State Governor Ademola Adeleke at the State House.
Why Tinubu removed subsidy
Tinubu announced the end of petrol subsidy during his inauguration speech on May 29, 2023, declaring that “subsidy is gone.”
The policy immediately triggered a sharp increase in petrol prices, with pump prices rising from below N200 per litre to significantly higher levels.
The removal was part of the administration’s broader economic reform programme aimed at reducing government spending on petrol subsidies, freeing public resources and encouraging investment in domestic refining.
However, the policy also contributed to a steep rise in transportation costs and living expenses, with food prices and household costs increasing significantly amid broader economic pressures.
Atiku changes position
Atiku, who supported subsidy removal during the 2023 presidential campaign, has since shifted his position, making the restoration of petrol subsidy a major component of his 2027 economic agenda.
The former vice president argues that Nigerians have yet to see sufficient benefits from the trillions of naira freed by the policy.
He has particularly criticised the impact of subsidy removal on household welfare, arguing that the savings have not translated into cheaper food, improved living standards or meaningful relief for ordinary Nigerians.
Atiku, however, says his proposal would not amount to a return to the opaque subsidy regime of the past.
Instead, he has proposed what he describes as a targeted and transparent intervention focused on domestic refining, with government support capped, budgeted and tied to verifiable production and measurable benefits to consumers.
Under his proposal, every barrel of crude allocated to support the intervention would be tracked to ensure that Nigerians benefit through lower fuel prices.
Atiku said the approach would provide cheaper crude feedstock to Nigerian refineries while ensuring that the resulting benefits are passed on to consumers.
The clash over petrol subsidy is therefore emerging as a major economic and political issue ahead of the 2027 presidential election, with the Tinubu administration defending subsidy remova
