Atiku’s subsidy plan failed under Obasanjo – Presidency

The Presidency has said that Atiku Abubakar’s plan to subsidise crude for local refineries failed when it implemented under former President Olusegun Obasanjo’s administration.

Otega Ogra, Senior Special Assistant to President Bola Tinubu on digital and new media, made the point while reacting to the proposal by the former vice-president for a production subsidy for local refineries.

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, 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, are the failed results of that experiment, Alhaji.”