Former Vice President Atiku Abubakar has intensified his criticism of President Bola Ahmed Tinubu’s economic policies, arguing that the benefits of higher government revenues should not come at the expense of Nigerian households.
Atiku, the African Democratic Congress (ADC) presidential candidate for the 2027 election, said the Federal Government’s argument that subsidy removal has increased allocations to states does not adequately address the hardship being experienced by ordinary Nigerians.
In a statement responding to Tinubu’s defence of the subsidy policy, Atiku argued that a federation cannot become stronger by transferring economic pressure from government treasuries to households.
He said increased allocations to state governments should not be celebrated as an economic achievement if citizens are simultaneously experiencing reduced purchasing power and rising living costs.
Atiku challenges FAAC argument
The former vice president particularly criticised the argument that higher Federation Account Allocation Committee (FAAC) disbursements are one of the benefits of petrol subsidy removal.
He argued that states should become more productive by attracting investment, developing their economies and expanding internally generated revenue rather than depending heavily on monthly allocations from Abuja.
According to Atiku, the current arrangement risks creating greater dependence on federal transfers.
He also questioned whether an increase in government revenue should be regarded as evidence of successful economic reform when households are struggling with inflation and declining purchasing power.
Former VP raises questions over petroleum costs
Atiku also questioned reported petroleum-related costs contained in the accounts of the Nigerian National Petroleum Company Limited (NNPCL).
He challenged the government to explain reported energy-security costs and under-recoveries, arguing that Nigerians deserve greater clarity about petroleum-sector finances.
He further renewed his demand for explanations concerning about ₦30 trillion in Federation Account revenues, deductions, savings and transfers which he says require reconciliation.
Atiku also questioned the ₦12.8 trillion Service-Wide Vote contained in the 2026 budget.
Subsidy debate moves into 2027 campaign
The disagreement forms part of the growing economic debate ahead of the 2027 presidential election.
Atiku has promised to introduce a different approach to petrol pricing if elected, while the Tinubu administration has continued to defend the removal of the petrol subsidy as a necessary reform.
The Federal Government has argued that the old subsidy regime was financially unsustainable and that removing it has strengthened government revenues.
Atiku, however, maintains that economic reforms should ultimately be judged by their impact on citizens rather than by the amount of money available to governments.
The subsidy debate is therefore likely to remain one of the major economic issues shaping the 2027 presidential campaign.