By Opeyemi Adelakun
The Presidency has criticised former Vice President Atiku Abubakar’s proposal for subsidising crude supplied to local refineries, arguing that a similar policy implemented during the Olusegun Obasanjo administration failed to deliver the desired results.
Otega Ogra, Senior Special Assistant to President Bola Tinubu on Digital and New Media, made the assertion while responding to Atiku’s call for a production subsidy for domestic refineries.
Atiku had backed the idea of providing subsidised crude to local refineries, including the Dangote Petroleum Refinery, as part of measures to support domestic fuel production.
Reacting to the proposal in a post on X, Ogra said the country had already experimented with a similar arrangement during Atiku’s tenure as 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 cited refinery utilisation figures from the period, saying Warri Refinery operated at 14.27 per cent in 2003 and 9.1 per cent in 2004.
He said Kaduna Refinery recorded utilisation rates of 15.96 per cent and 26 per cent in the same years.
According to him, utilisation at the Port Harcourt Refinery also declined from 60.73 per cent in 2001 to 31.04 per cent in 2004.
Ogra further argued that petrol prices increased substantially during the period despite the subsidy arrangement.
“Meanwhile, 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 also referred to an October 9, 2003, directive which he said ended the discount previously granted on crude supplied to domestic refineries.
“On October 9, 2003, your same administration cancelled the discount itself through Presidential directive PRES/158.”
According to Ogra, former President Obasanjo subsequently directed the Nigerian National Petroleum Corporation to sell crude to refineries at the prevailing international price.
“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.”
Ogra challenged Atiku to provide evidence that the earlier subsidy arrangement had achieved its intended objectives.
“So, before selling Nigerians this failed production subsidy policy again, answer one simple question.
“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 maintained that the underlying policy proposal remained essentially the same despite the passage of time.
“It’s still the same theory you practiced then, and we haven’t changed country yet.”
Ogra concluded his response by pointing to what he described as the historical outcome of the earlier policy.
“One thing we already have, are the failed results of that experiment, Alhaji.”
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