The Presidency yesterday challenged presidential candidate of the African Democratic Congress (ADC) Atiku Abubakar to provide details and clarity on his subsidy restoration plan.
It said Atiku lacks basic understanding of his own proposal, highlighting his many recent pronouncements on the issue as confused, incoherent and politically motivated.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, said Atiku’s proposal to introduce what he termed a “targeted subsidy” exposed fundamental gaps in his understanding of petroleum refining economics and raised questions about the workability of the policy.
“The former Vice President is definitely suffering from a lack of basic understanding of his newfound policy prescription,” Onanuga said.
Several stakeholders also condemned but what they described as opportunistic politicization of a major economic policy.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said Atiku’s proposal was similar to “dragging the country back to the stone age”, referencing the gradual progress and stability the country has attained sequel to the tough decision to remove petrol subsidy.
IPMAN said restoring petrol subsidy would stifle investments in the midstream and downstream sectors of the oil and gas industry while generally undermining the much-applauded macroeconomic balance the country is enjoying now.
A think-tank- Independent Media and Policy Initiative (IMPI) also criticised Atiku’s plan as capable of inflicting monumental damage on the economy.
The group warned that such a policy reversal could reduce revenue available for distribution to state and local government and states, constrict government cash flow, undermine ongoing projects and discourage foreign investment.
IMPI stated that while Atiku’s proposal might appear attractive to unsuspecting Nigerians grappling with rising cost of living, it would ultimately lead to greater damage and hardship, undermining revenue flows to the three tiers of government and reversing the country to harrowing era of industrial and social unrests.
