Atiku’s Petrol Subsidy Plan Could Cost Nigeria N19.1trn Yearly — Presidency

Nigeria could spend about N19.1 trillion annually if it restores petrol subsidy under the proposed policy of Atiku Abubakar, the Presidency has said.

Otega Ogra, Senior Special Assistant to President Bola Tinubu on Digital and New Media, gave the estimate during an appearance on TVC News on Tuesday.

Ogra said the figure translates to about N52.3 billion daily or N1.5 trillion monthly, arguing that the proposed subsidy would place a significant financial burden on government.

The estimate comes amid renewed debate over petrol subsidy after Atiku, presidential candidate of the African Democratic Congress (ADC), said he would restore the policy if elected president.

How the Presidency arrived at N19.1trn

According to Ogra, the estimate is based on a crude oil price of $80 per barrel, with Nigeria potentially subsidising each barrel by about $40.

He said the resulting annual cost would amount to approximately N19.1 trillion.

Ogra also put the equivalent cost at about N605,000 for every Nigerian.

He argued that the funds could instead be deployed to other areas of the economy.

For comparison, Ogra said N19.1 trillion would be enough to pay the N70,000 minimum wage for one year to about 22 million Nigerians, based on the amount shared through the Federation Account Allocation Committee (FAAC) in July.

Atiku’s position on petrol subsidy

The controversy began on August 25 when Paul Ibe, Atiku’s spokesperson, said an Atiku administration would reintroduce petrol subsidy for a period before eventually phasing it out.

Atiku subsequently clarified his position, saying his plan to restore the subsidy remained unchanged.

He, however, said there would be no predetermined date for ending the subsidy.

The proposal marks a major point of difference between Atiku’s economic position and the Tinubu administration, which removed petrol subsidy after assuming office in 2023.

Presidency defends subsidy removal

Ogra defended the government’s decision to remove the subsidy, arguing that the policy had encouraged rent-seeking and allowed some Nigerians to benefit disproportionately from public resources.

“Before Mr President came in in 2023 and undertook his reforms, we all know what was happening in the economy: rent-seeking,” he said.

He also criticised Atiku’s proposal, describing the plan as an uninformed approach to managing the economy.

The Presidency’s estimate comes days after Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, said subsidy removal had mobilised N15.8 trillion in resources for the federation between June 2023 and December 2025.

The disclosure provides context to the financial stakes surrounding the subsidy debate, as political parties begin presenting competing economic policies ahead of the 2027 general elections.

While the Presidency argues that restoring the subsidy would impose a heavy fiscal burden, Atiku has maintained that the policy should be restored as part of his proposed approach to managing petrol prices.