ADC says it would change petroleum law if needed for domestic refining subsidy

An African Democratic Congress government would seek changes to Nigeria’s petroleum law if necessary to introduce a subsidy for locally refined fuel, the party’s vice-presidential candidate, Rotimi Amaechi, has said. Mr Amaechi made the statement during an interview with Channels Television’s Politics Today. He said an administration led by presidential candidate Atiku Abubakar would submit a bill to the National Assembly if the Petroleum Industry Act prevented the policy.

He said the proposal would follow the legal process, either through an amendment or repeal of the relevant law. The planned measure would differ from the former subsidy system for imported petrol, he said, because it would support production in Nigeria and aim to end fuel imports. Mr Amaechi described a possible arrangement in which the government would sell crude to domestic refiners below the international-market price.

Using hypothetical figures, he said crude valued at N15,000 could be sold for N10,000, with the N5,000 difference treated as the subsidy. He said support would be available to the Dangote refinery and existing modular refineries. In his view, the policy could encourage investment in refining and reduce costs linked to fuel, transport and other goods.

The proposal has attracted questions from the All Progressives Congress Presidential Campaign Council about its legal, fiscal and operational basis. The council has also asked how assistance to refiners would result in lower prices for consumers. Mr Amaechi did not specify the discount that would apply, the quantity of crude covered, the programme’s annual cost or how refiners would be required to pass savings to consumers.

He said the effects would be gradual but promised that Nigerians would see improvement within a year if the ticket won the 2027 election.