The presidential candidate of the Allied Peoples Movement (APM), Seyi Makinde, has ruled out bringing back Nigeria’s old fuel subsidy regime if elected president in 2027, saying he would instead restructure the petroleum pricing system to make Nigerians benefit more directly from the country’s crude oil.
Makinde, who is also the Governor of Oyo State, spoke on Monday during the inauguration of his presidential campaign office in Abuja, where he outlined his position on petrol pricing under his proposed “Reset Nigeria” agenda.
The governor said his proposal should not be mistaken for a plan to restore the subsidy system abolished by President Bola Tinubu in 2023.
“Some people have asked whether I’m suggesting that we bring back the old fuel subsidy. That is not my position.”
Instead, Makinde proposed that crude oil supplied to domestic refineries should be priced in a way that gives Nigerians a measurable benefit from the country’s natural resources.
He argued that Nigeria, as an oil-producing country, should not supply crude to its own refineries under pricing conditions that effectively treat the crude as though it had been imported from another country.
“Nigeria’s oil must provide a real and measurable benefit to Nigerians.”
According to Makinde, the benefit should be incorporated into the petroleum value chain from the point at which crude is supplied to domestic refineries, rather than through an intervention after additional costs have already accumulated.
“That benefit should be built into the system from the beginning, through the price at which crude oil is supplied for domestic refining, not through an opaque intervention at the petrol pump after all the cost inefficiencies and distortions have been added.”
The proposal would therefore shift the focus from subsidising petrol consumption to reducing the cost of a major input used by domestic refineries.
Makinde said the system should also provide Nigerians with greater visibility into how the final price of petrol is determined.
He called for transparency across the petroleum value chain, including crude production and allocation, refining, transportation, distribution, taxes and retail margins.
“Nigerians must be able to see how the final price is reached.”
The governor said Nigerians should know what they are paying for, who receives the money and where inefficiencies are increasing the final cost of petrol.
His position comes amid a renewed political debate over the future of petrol pricing ahead of the 2027 presidential election.
Former Vice President and African Democratic Congress presidential candidate Atiku Abubakar has separately proposed a production subsidy model that would support domestic refining while moving away from the former subsidy arrangement on imported petrol.
Makinde’s proposal differs in its stated approach. While both politicians argue that Nigerians should receive greater benefits from domestic crude production and refining, Makinde is specifically advocating a preferential domestic crude pricing framework rather than a return to the old fuel subsidy system.
The debate follows the removal of petrol subsidy by Tinubu shortly after his inauguration on May 29, 2023. The decision substantially changed the way petrol prices are determined in Nigeria and contributed to a sharp increase in transportation and living costs.
Makinde said his alternative would seek to address the problem earlier in the supply chain.
He used the example of a community producing food to explain his argument, saying residents should not have to pay a price that assumes the commodity travelled from another part of the world before reaching them.
The APM candidate also linked his petroleum proposal to his broader call for a more transparent government.
According to him, the “Reset Nigeria” agenda would require government to clearly explain how public resources are used and how important economic decisions are made.
Makinde also rejected the idea that his presidential campaign should be dismissed because of the strength of the political forces already competing for power.
He recalled that similar doubts had been expressed when he first contested the Oyo State governorship, arguing that political campaigns ultimately depend on voters.
“Our voices count. Our experiences count. Our ideas count. And, together, our votes will count.”
He urged Nigerians to participate in the policy debate and said his campaign would seek input from traders, farmers, workers, business owners and young people affected by rising costs.
The APM candidate’s latest position adds another dimension to the growing 2027 fuel subsidy debate, with presidential contenders increasingly presenting different approaches to the question of how Nigeria can reduce petrol costs without returning to the old subsidy model.
For Makinde, the proposed solution is to use Nigeria’s position as an oil-producing country to provide cheaper crude to domestic refineries, improve transparency throughout the petroleum value chain and allow the resulting benefits to reach consumers through the pricing system.
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