Presidency Defends 30-Day Petrol Discount, Says No Return To Subsidy Despite Opposition Backlash
The Presidency has defended the Federal Government’s 30-day petrol discount initiative, insisting that the move does not amount to a return of fuel subsidy despite backlash from opposition parties.
The Presidency was reacting to criticisms trailing the announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the Nigerian National Petroleum Company Limited (NNPC) Retail would forgo its profit margin and sell petrol at cost price for 30 days.
Former Vice President Atiku Abubakar, the Obidient Movement, and other opposition groups had described the intervention as a “panic-driven publicity stunt,” “tokenism” and “Greek gift” ahead of the 2027 elections, questioning what happens on Day 31.
But in a State House Press Release titled “NNPC RETAIL FORGOES PETROL PROFIT MARGIN TO OFFER SOME SUPPORT TO NIGERIAN HOUSEHOLDS AMID GLOBAL PETROL CRISIS,” signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on October 8, the Presidency said the gesture must not be misinterpreted.
According to the statement, NNPC Retail, which already sells at the lowest price in the market, will offer the new deal within the next 30 days.
“This means if NNPC’s landing cost is N1300, it will sell fuel to Nigerians, especially commercial vehicles, at the same price,” the statement said.
The Presidency said the discount gesture, backed by President Bola Ahmed Tinubu, is to cushion the impact of global crude oil price shocks and volatility on vulnerable households.
Oyedele was emphatic that NNPC agreeing to sell at a discount must not be misinterpreted as the restoration of petrol subsidy which ended on May 29, 2023.
“To be clear, none of these measures restores a blanket subsidy. Doing so would create longer-term harm for a short-term cure. Each measure is designed to reach the people who need help, without putting the wider economy at risk,” the Presidency said.
N1,350 Ceiling, Not Price Control
On measures to stabilise pump prices, the Presidency disclosed that the Federal Government is negotiating a ceiling of N1,350 a litre on the ex-gantry or landing cost of petrol.
Where costs rise above the ceiling, refiners and importers will carry the shortfall and recover it later when crude prices or exchange rate allows, without breaching the ceiling.
“This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppressing them. The reasoning is simple. 1,400 naira a litre today and 1,400 tomorrow is better than 1,500 today and 1,300 tomorrow, because volatility itself adds to uncertainty and cost. And when fares rise sharply, they rarely fall as fast. The ceiling will be reviewed monthly, reset as costs require, and the figures published for transparency,” Oyedele was quoted as saying.
The statement also announced forward sales of crude to domestic refineries to shield pump prices from global volatility, as well as increased funding for cash transfers to vulnerable households and subsidised credit for small businesses.
Other Palliatives To Check Fares
Other measures listed by the Presidency to address opposition concerns about high transport fares include:
Faster CNG rollout: Scaling up deployment with states, with expectation that transporters will pass savings to passengers. CNG is 60-70% cheaper than petrol.
Excess profit tax: To be considered for operators who take undue advantage of consumers. Proceeds will be used exclusively for transport support or vouchers for urban minimum-wage earners.
Cutting road levies: Under the 2025 tax reform laws, FG is reining in collection of road taxes and levies that inflate fares, in collaboration with states and security agencies.
National Strategic Fuel Reserve: To release refined products under clear, published rules whenever global disruption or hoarding threatens supply. “This is not a subsidy, and it does not fix prices; rather, it secures supply and reduces price volatility.”
Traffic and logistics: Improved traffic flow in major urban centres and NIPOST’s newly launched address codes to make logistics cheaper.
The Presidency acknowledged the hardship caused by subsidy removal but maintained that returning to the old regime would be more damaging.
“Removing the fuel subsidy came at a price. But the alternative has been tried. Nigeria has already lived through that cycle: scarcity, smuggling, a collapsing currency and a fiscal crisis. We cannot afford to live through it again, least of all in response to a temporary disruption, and at the very moment the results of reform are gathering pace.
“The government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity. It is to ensure its gains reach more Nigerians, faster and in more tangible ways. That is our work, and we are committed to doing it,” the statement said.
The Federal Government added that it is also working on a comprehensive package of fiscal measures to bring inflation down to single digits sustainably in the near term.
Oyedele said he hopes other marketers will take a cue from NNPC, as the sharp rise in crude and petrol prices is not expected to last long.
