The Presidency has criticised former Vice-President, Atiku Abubakar’s proposal to subsidise crude supplied to local refineries, arguing that a similar policy was attempted under former President, Olusegun Obasanjo but failed.
NEWSNGR reports that the Senior Special Assistant to President Bola Tinubu on Digital and New Media, Otega Ogra, made the claim while reacting to Atiku’s proposal for what he described as a production subsidy aimed at reducing the cost of locally refined petrol.
Atiku said his proposed subsidy would support domestic refining rather than subsidise imported petroleum products.
Reacting in a post on 𝕏, Ogra said Nigeria had previously experimented with the policy when Atiku was Vice-President.
“Excuse me, sir. Nigeria already tried your production-subsidy to local refineries idea while you were Vice President. We know the shambolic results of that production subsidy. You know it too,” Ogra wrote.
He cited refinery utilisation figures from the period to support his argument.
According to Ogra, the utilisation rate of the Warri Refining and Petrochemicals Company fell to 14.27 per cent in 2003 and 9.1 per cent in 2004, while the Kaduna refinery recorded utilisation rates of 15.96 per cent and 26 per cent in the same years.
He added that the Port Harcourt refinery’s utilisation rate dropped from 60.73 per cent in 2001 to 31.04 per cent in 2004.
Ogra also argued that the policy failed to prevent petrol prices from rising during the period.
“Meanwhile, the price of petrol more than tripled by 2004 and nearly quadrupled by the time you left office despite your production subsidy to local refiners,” he stated.
He further claimed that the government subsequently withdrew the subsidy arrangement.
“On October 9, 2003, your same administration cancelled the discount itself through Presidential directive PRES/158,” Ogra said.
According to him, Obasanjo subsequently directed the Nigerian National Petroleum Corporation to pay the international price for crude supplied to refineries.
“President Obasanjo ordered NNPC to pay full international price for refinery crude. Your production subsidy was tried, failed and scrapped, with you as Vice President,” he added.
The presidential aide challenged Atiku to provide evidence that the earlier policy had achieved its intended objectives.
“So, before selling Nigerians this failed production subsidy policy again, answer one simple question,” Ogra wrote.
“I know there are many Nigerians who were too young to know what was happening then. But if you may tell them, where is the evidence that it worked the first time?”
He added that the proposal being presented by Atiku was essentially the same approach adopted during the previous administration.
“It’s still the same theory you practiced then, and we haven’t changed country yet.
“One thing we already have, are the failed results of that experiment, Alhaji,” Ogra added.
