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The Presidency has criticised former Vice-President, Atiku Abubakar’s proposal to subsidise crude supplied to local refineries, arguing that a similar policy was attempted under former President, Olusegun Obasanjo but failed.
Naija News reports that the Senior Special Assistant to President Bola Tinubu on Digital and New Media, Otega Ogra, made the claim while reacting to Atiku’s proposal for what he described as a production subsidy aimed at reducing the cost of locally refined petrol.
Atiku said his proposed subsidy would support domestic refining rather than subsidise imported petroleum products.
Reacting in a post on 𝕏, Ogra said Nigeria had previously experimented with the policy when Atiku was Vice-President.
“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,” Ogra wrote.
He cited refinery utilisation figures from the period to support his argument.
According to Ogra, the utilisation rate of the Warri Refining and Petrochemicals Company fell to 14.27 per cent in 2003 and 9.1 per cent in 2004, while the Kaduna refinery recorded utilisation rates of 15.96 per cent and 26 per cent in the same years.
He added that the Port Harcourt refinery’s utilisation rate dropped from 60.73 per cent in 2001 to 31.04 per cent in 2004.
Ogra also argued that the policy failed to prevent petrol prices from rising during the period.
“Meanwhile, the price of petrol more than tripled by 2004 and nearly quadrupled by the time you left office despite your production subsidy to local refiners,” he stated.
He further claimed that the government subsequently withdrew the subsidy arrangement.
“On October 9, 2003, your same administration cancelled the discount itself through Presidential directive PRES/158,” Ogra said.
According to him, Obasanjo subsequently directed the Nigerian National Petroleum Corporation to pay the international price for crude supplied to refineries.
“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,” he added.
The presidential aide challenged Atiku to provide evidence that the earlier policy had achieved its intended objectives.
“So, before selling Nigerians this failed production subsidy policy again, answer one simple question,” Ogra wrote.
“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?”
He added that the proposal being presented by Atiku was essentially the same approach adopted during the previous administration.
“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,” Ogra added.
Fisrly, to otega ogra. What are the causes of inflation or reising price of petrol?
Remember, are you trying to tell us that selling petrol in our fueling station or filling station in price they like are well organized or pleased? Or what are the causes of these behavior including hike petrol????.
Don’t let me deceiving majority like YOU(otega) because their creator ( Eleda won) are looking at you all.
Orega, are you not ” arije nidi modaru/ ibaje.
Ogra, what causes inflation in all commodities?????
Baba Obasanjo, did well, Baba Obasanjo did best. Under Baba Obasanjo regime or asmistration, we live in best standard of living. He exposed all , example, we all use phonenow which was meant for rich people before. Baba Obasanjo has helped us(majority). Kudos to him, LONG LIFE to him(Eleda wa ma tesiwaju da emi won si) Buhari has gone.
We are choosing leader to help us and help us to monitor our resources. We are not choosing them for business.
Otega Ogra, stop deceiving people, don’t believe in anybody or anyone. In reality, petrol is problem, petrol is causes of problems
I think, to let us see what will happen when price subsidy to before and see where the cheating come. Land and others commodities are also petrol?????. Majority, don’t have anything to selling for money.
Naira no yet complete change colour , fuel hike, fuel raising price , all the problems created by President Buhari , the same path.
Crying……
Rubbish governing. Opolo ju opolo lo. I want to rule. I want to show Nigerian (mo lopolo)
Crying……. Where the increasing petrol money is going?????. Mo ni opolo