Former Vice-President Atiku Abubakar has raised serious concerns regarding the Federal Government's financial policies towards oil companies, alleging that President Bola Tinubu is favoring these firms with tax incentives while ordinary Nigerians struggle with escalating petrol prices and a high cost of living. This statement was made public on Sunday through a release from his Senior Special Assistant on Public Communication, Phrank Shaibu.

Atiku's remarks come in the wake of Tinubu's controversial decision to remove the petrol subsidy, which he argues contradicts the government's ongoing financial support for petroleum investors through various tax credits and concessions. He stated, "Nigerians were told there was no alternative and that enduring this pain was the necessary price of economic reform. But when major oil investors knock on Tinubu’s door, the sermon changes."

The former Vice-President pointed out that the government's incentives for deep offshore oil and gas projects allow eligible companies to benefit from production tax credits ranging from $3 to $4.50 per barrel. He further highlighted that, in some instances, these incentives could increase total benefits to as much as $11.50 per barrel. Atiku questioned the rationale behind the government's interventionist policies, asking, "So, what exactly is Tinubu’s objection: government intervention itself, or government intervention for Nigerians?"

In a further critique, Atiku challenged the claim that the petrol subsidy has been entirely eliminated. He referred to the audited accounts of NNPC Limited, which indicated that the company incurred approximately N4.84 trillion in energy-security expenses in 2023, with projections rising to N7.13 trillion in 2024. He pointed out that part of these expenses stemmed from discrepancies between the exchange rates used for regulated petrol prices and those applicable during import settlements.

Atiku questioned, "If Nigerians were paying market prices because ‘subsidy is gone’, why was the Federation still carrying trillions of naira in under-recovery and energy-security costs?" He emphasized that the government should not merely focus on the terminology of payments, as public funds are still being utilized to bridge the gap between petrol costs and selling prices.

In response to the current economic challenges, Atiku proposed an economic recovery program that would not reinstate the previous subsidy system, which he critiqued as open-ended and opaque. Instead, he suggested a targeted intervention that would be properly budgeted and independently audited, aimed at increasing local production and refining capacity while restoring household purchasing power.

He stated, "You cannot subsidise capital and criminalise relief for citizens. You cannot offer cushions upstairs and call suffering downstairs reform." Atiku also called for greater transparency regarding the tax credits and incentives provided to companies in the petroleum sector, insisting that Nigerian investors deserve fair access to similar benefits.

Atiku concluded that the success of economic reforms should be measured by their impact on the living standards of the populace, rather than by the level of hardship endured by Nigerians. Last week, he reiterated his commitment to restoring the petrol subsidy if he wins the presidential election in 2027, a proposal that has drawn criticism from Tinubu, who labeled Atiku as "ignorant of governance and the economy."