Subsidy: Your reforms worsening hardship, Atiku lashes at Tinubu

Former Vice President Atiku Abubakar has strongly criticized President Bola Tinubu's economic policies, accusing them of exacerbating the cost-of-living crisis in Nigeria. In a statement released on Friday via his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku rejected Tinubu’s characterization of his proposed intervention in the petroleum sector as economically ill-informed. The former vice president argued that the current administration's decisions, particularly the removal of petrol subsidies, the liberalization of the foreign exchange market, and the resulting surge in inflation, transport costs, and household expenses, have deepened the hardships faced by ordinary citizens. Atiku made these remarks following his declaration earlier in the week that he would reintroduce the fuel subsidy if elected. He stated that he would not only restore the subsidy but also demand the return of funds allegedly misappropriated during previous administrations. This stance directly contradicts President Tinubu, who has dismissed Atiku’s proposals as evidence of a lack of understanding regarding sound economic management. In response, Tinubu described Atiku's comments as indicative of a "serious ignorance on governance and economy." The president made this remark during a meeting with Osun State Governor Ademola Adeleke at the Aso Rock Villa. Despite this criticism, Atiku defended his position, asserting that the true ignorance lies in equating economic hardship with effective policy-making. He pointed out that while Tinubu removed the subsidy from the public's wallets, he has yet to address the unresolved issues surrounding the policy change. Atiku emphasized that his proposal does not involve reviving the previous subsidy system, which he claimed was riddled with corruption and inefficiency. Instead, he advocated for a targeted, temporary support mechanism aimed at boosting domestic oil refining capacity and shielding consumers from extreme price fluctuations. According to Atiku, the economic landscape has evolved significantly since the initial removal of the petrol subsidy in May 2023, necessitating a reevaluation of existing strategies. The former vice president highlighted how the abrupt removal of the subsidy without sufficient safeguards led to a cascade of negative impacts, including sharp increases in petrol prices, transportation costs, and food prices, alongside a substantial depreciation of the naira. His statement underscored the need for a more flexible approach to economic reform, one that considers the changing dynamics of the national economy. Atiku also questioned the continued existence of petroleum under-recoveries and energy-security costs within the Nigerian National Petroleum Company Limited. He cited figures suggesting these amounts could reach up to ₦17.5tn, comprising roughly ₦7.13tn in energy-security costs and ₦8.67tn in other related expenses. These numbers prompted Atiku to challenge the federal government to clarify why such costs persist if the subsidy is indeed defunct and why transparency remains elusive despite claims of curbing corruption. Nigerians, according to Atiku, continue to bear the brunt of these reforms through elevated living costs, while uncertainties linger around the financial commitments linked to the petroleum sector. He contended that Tinubu has created a situation where the populace endures the pain of higher living standards, while the government retains the burden of unaddressed fiscal responsibilities. The Federal Government has repeatedly maintained that the petrol subsidy is no longer viable due to its unsustainable nature. However, Atiku's criticisms highlight ongoing debates over the effectiveness and fairness of current economic policies, particularly concerning their impact on everyday life and the broader implications for national economic stability.