The Presidency has argued that former Vice-President Atiku Abubakar’s proposal to subsidise crude oil supplied to local refineries had already been tested and failed during the administration of former President Olusegun Obasanjo.
Otega Ogra, Senior Special Assistant to President Bola Tinubu on digital and new media, made this known while responding to Atiku’s proposal for a production subsidy aimed at supporting local refineries.
In a post on X (Twitter), Ogra wrote: “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.”
According to Ogra, the utilisation rate of the Warri refinery declined to 14.27 percent in 2003 and further dropped to 9.1 percent in 2004. He added that the Kaduna refinery operated at 15.96 percent and 26 percent in those same years.
He further stated that the Port Harcourt refinery’s utilisation rate fell 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.
Ogra therefore challenged Atiku to provide evidence that the policy he is proposing again produced positive results when it was previously implemented.
“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.”
