Former Vice President Atiku Abubakar has said Dangote Refinery’s warning against government-imposed petrol prices that could force refiners to operate at a loss has vindicated, rather than undermined, his proposed production subsidy model.
Atiku, the presidential candidate of the African Democratic Congress in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu on Friday, accused the government of deliberately misrepresenting his proposal in an attempt to discredit it.
He said Dangote Refinery was right to resist any policy that would compel a private refinery to sell petrol below cost, stressing that his proposal was specifically designed to avoid such a situation.
“Dangote raised a legitimate business concern. The presidency turned it into a campaign of fear. A refinery that has invested billions of dollars cannot be commanded to sell indefinitely below cost and absorb the losses. That would be reckless, economically destructive and unfair to any private investor.
“But that is precisely why our proposal is different. We are restoring subsidy through a production subsidy model, not an import subsidy model,” the statement read in part.
