The Presidency has criticised former Vice President Atiku Abubakar’s proposal to introduce a production subsidy for local refineries, saying a similar policy implemented under former President Olusegun Obasanjo failed.
The Senior Special Assistant to President Bola Tinubu on Digital and New Media, Otega Ogra, made the claim while reacting to Atiku’s proposal.
Atiku had advocated a production subsidy for local refineries as part of measures to reduce petrol prices and support domestic refining.
However, Ogra argued that Nigeria had previously implemented a similar arrangement when Atiku served 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 wrote on X.
He cited refinery utilisation figures under the Obasanjo administration, claiming that Warri Refinery’s utilisation fell to 14.27 per cent in 2003 and 9.1 per cent in 2004.
According to him, Kaduna Refinery recorded utilisation rates of 15.96 per cent and 26 per cent in the same years, while Port Harcourt Refinery’s utilisation declined from 60.73 per cent in 2001 to 31.04 per cent in 2004.
Ogra also claimed that petrol prices increased significantly during the period despite the subsidy arrangement.
He said the policy was eventually discontinued after the Obasanjo administration cancelled the discount through a presidential directive on October 9, 2003.
According to Ogra, former President Obasanjo subsequently directed the Nigerian National Petroleum Corporation to pay the full international price for crude supplied to refineries.
“Your production subsidy was tried, failed and scrapped, with you as Vice President,” he said.
Ogra challenged Atiku to provide evidence that the proposed policy had worked when it was previously implemented.
“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 asked.
He maintained that the production subsidy proposal being promoted by Atiku was similar to the policy implemented during the Obasanjo administration.
“It’s still the same theory you practiced then, and we haven’t changed country yet,” Ogra added.