Senator Dino Melaye, a prominent member of the African Democratic Congress (ADC) and supporter of former Vice President Atiku Abubakar, has said the proposed fuel-subsidy policy of the party’s 2027 presidential candidate could bring the pump price of petrol down to between ₦400 and ₦500 per litre.
Melaye made the assertion during an interview on AIT’s Democracy Today programme, where he defended Atiku’s proposal to reintroduce a form of petrol subsidy as part of an economic plan aimed at reducing the cost of living in Nigeria.
According to Melaye, the policy would have consequences beyond the price motorists pay at filling stations. He argued that lower petrol prices would help reduce transportation costs, the cost of moving goods and commodities, aviation-related expenses and, ultimately, the prices of goods and services across the economy.
He maintained that petrol remains an important component of Nigeria’s economic chain because transportation and logistics costs affect virtually every sector.
“Everything is around this subsidy,” Melaye said, arguing that once transportation becomes cheaper, the movement of goods and commodities would also become less expensive.
The proposal comes amid an ongoing national debate over the consequences of the fuel-subsidy removal announced by President Bola Tinubu in May 2023. The policy led to a sharp increase in petrol prices and significantly changed the economics of fuel distribution in Nigeria. The Federal Government has subsequently maintained that returning to the previous subsidy regime would create substantial fiscal pressures.
Atiku’s camp has, however, presented its proposal as a different model from the subsidy arrangement that existed before 2023. According to explanations from his campaign, the proposed system would focus on supporting qualifying domestic refineries with crude oil at preferential prices, with the benefit expected to be passed on to consumers through lower petroleum-product prices.
The proposal is also expected to be capped, monitored and subject to auditing, with the objective of reducing production costs while Nigeria expands its domestic refining capacity. Atiku’s representatives have said the model could help bring petrol prices to around ₦500 per litre.
Melaye went further, arguing that what Nigerians previously experienced as fuel subsidy was accompanied by significant corruption and leakages. He said Atiku’s approach would redirect resources towards consumers rather than allowing what he described as a system in which public resources could be diverted by a few individuals.
“If you start buying fuel at ₦500 or at ₦400, definitely it’s going to have a resultant effect on every other facet, including price of goods and commodities,” Melaye said.
The proposal has nevertheless attracted criticism from the Federal Government and some private-sector voices. Critics have questioned how a subsidy would be financed and whether restoring government intervention in petrol pricing could recreate the fiscal burdens associated with the former system. The Presidency has argued that any subsidy arrangement must clearly identify its funding source, legal framework and mechanisms for preventing abuse.
The debate therefore goes beyond the projected ₦400–₦500 pump price. It centres on how Nigeria can make petrol and transportation more affordable while maintaining fiscal sustainability, encouraging domestic refining and preventing corruption or leakages in public spending.
For Melaye and the Atiku camp, the proposed intervention is intended to make Nigeria more affordable for ordinary citizens. Whether the projected pump-price reduction can be achieved would ultimately depend on the details of the policy, its financing, domestic refining costs, crude-oil supply arrangements and the effectiveness of the proposed monitoring mechanisms.
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