By Abiola Olawale
The Presidency has dismissed former Vice President Atiku Abubakar’s proposed production subsidy for local refineries, pointing out that a remarkably similar policy was tried, tested, and ultimately abandoned during his time in office.
Reacting to Atiku’s economic policy proposals, which advocate for shifting subsidies from importation to local production by supplying crude to domestic refineries at preferential prices, the federal government argued that the model is fundamentally flawed and historically unsuccessful.
Speaking on the initiative, Otega Ogra, Senior Special Assistant to President Bola Tinubu on Digital and New Media, noted that Nigerians are already familiar with the “shambolic results” of the production-subsidy experiment from the Olusegun Obasanjo administration.
Ogra wrote on X (Twitter): “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 said Warri refinery’s utilisation fell to 14.27 percent in 2003 and 9.1 percent in 2004, while Kaduna refinery recorded 15.96 percent and 26 percent, respectively.
He said Port Harcourt refinery’s utilisation also dropped from 60.73 percent in 2001 to 31.04 percent in 2004.
“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.
“On October 9, 2003, your same administration cancelled the discount itself through Presidential directive PRES/158.
“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.
“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?
“It’s still the same theory you practiced then, and we haven’t changed country yet.
“One thing we already have is the failed results of that experiment, Alhaji.”
