Former Kogi West senator and African Democratic Congress (ADC) chieftain Dino Melaye has said a proposed return to petrol subsidies under former Vice-President Atiku Abubakar could bring pump prices down to between ₦400 and ₦500 per litre if implemented.
Melaye made the statement on Monday while appearing on African Independent Television’s Democracy Today programme, where he defended the ADC’s economic agenda ahead of the 2027 general elections.
His projection presents a potential outcome of the party’s proposed approach to fuel pricing. It should be treated as a political claim rather than a confirmed future pump price.
Melaye Defends Atiku’s Fuel Policy
Melaye argued that restoring a subsidy could reduce the amount consumers pay for petrol at filling stations.
Fuel pricing has remained a major issue in Nigeria since the removal of the petrol subsidy, which contributed to higher transportation and operating costs for households and businesses.
The ADC chieftain’s remarks place the party’s proposed response to these pressures within the wider debate over the cost of living.
What Would Determine the Pump Price?
The actual retail price of petrol under a future subsidy arrangement would depend on several variables.
These include international crude oil prices, the naira exchange rate, refining and distribution costs, taxes and levies, and the size of any government subsidy.
The difference between the market cost of supplying petrol and the price charged to consumers would determine the public expenditure required to sustain a subsidy at a particular pump price.
Melaye’s ₦400–₦500 estimate would therefore need to be supported by a detailed pricing model showing the assumptions behind the projection.
Questions About Funding and Sustainability
A subsidy can reduce the immediate price paid by consumers, but it also creates a fiscal obligation if the government covers the difference between the market cost and the regulated price.
The sustainability of such a policy depends on the cost of the subsidy, the government’s revenue position and the safeguards used to prevent abuse.
Any proposed restoration would also need to explain how eligible supplies would be identified, how payments would be verified and how the arrangement would be monitored.
Economic Debate Ahead of 2027
Melaye’s statement adds to the debate over the economic direction proposed by the ADC and other political parties.
While the projected pump price provides a specific figure for public discussion, the final outcome would depend on the details of the policy and the economic conditions under which it was implemented.
A formal pricing framework and transparent estimates of the fiscal implications would help Nigerians assess the proposal.