Former Vice-President Atiku Abubakar has accused the Federal Government of granting tax incentives and other concessions to oil companies while Nigerians continue to face high petrol prices and rising living costs.
He questioned the government's decision to remove the petrol subsidy while continuing to provide tax credits and other incentives to investors in the petroleum sector.
“Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes,” Atiku said.
The former vice-president argued that deep offshore oil and gas incentives available to eligible projects included production tax credits of between $3 and $4.50 per barrel, with other incentives potentially bringing the total benefit to as much as $11.50 per barrel in some cases.
He questioned the rationale behind providing such support to oil investors while Nigerians were being asked to bear the consequences of the government's economic reforms.
“So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?” Atiku asked.
Atiku Questions End of Petrol Subsidy
Atiku also challenged the Federal Government's claim that the petrol subsidy had been completely removed.
He referred to the audited accounts of NNPC Limited, which he said recorded about N4.84tn in energy-security expenses and related shortfalls in 2023 and approximately N7.13tn in 2024.
According to Atiku, NNPC attributed part of the expenses to the difference between the exchange rate used in determining regulated Premium Motor Spirit prices and the rate applicable when import obligations were settled.
He argued that the figures raised questions about whether the subsidy had truly been eliminated.
“So, where exactly did the subsidy go? If Nigerians were paying market prices because ‘subsidy is gone’, why was the Federation still carrying trillions of naira in under-recovery and energy-security costs?” he asked.
Atiku's comments come amid continued debate over the impact of the Federal Government's economic reforms, including the removal of the petrol subsidy and the measures introduced to attract investment into Nigeria's oil and gas industry.
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