The Federal Government has introduced a 30-day petrol discount and proposed a N1,350-per-litre ceiling on landing costs to cushion Nigerians against rising living expenses. Finance Minister Taiwo Oyedele said NNPC Retail would sell petrol without adding its retail profit margin during the period, prioritising public transport operators to encourage lower fares.
Oyedele explained that the proposed landing-cost ceiling would help moderate sudden price increases by allowing refiners and importers to recover excess costs later when market conditions improve. The ceiling would be reviewed monthly, with the government insisting that the arrangement is designed to reduce price volatility rather than impose fixed pump prices or restore fuel subsidies.
Other planned interventions include forward crude oil sales to domestic refineries, increased cash transfers to vulnerable households, subsidised credit and expanded compressed natural gas adoption. The government said more than 120,000 vehicles now run on CNG, supported by over 400 conversion centres and 96 refuelling stations, while CNG buses have reduced transport fares by between 30 and 50 per cent in some areas.
The government is also considering an excess-profit tax on energy operators exploiting consumers, with proceeds earmarked for transport support or vouchers for low-income urban workers. Additional plans include tax relief for low-income earners, a national strategic fuel reserve, reduced regulatory costs and stronger monitoring of hoarding, diversion, product quality and unjustified profit margins.
The Presidency maintained that the measures would not reverse the removal of petrol subsidies announced by President Bola Tinubu in May 2023. Presidential spokesman Bayo Onanuga warned that reinstating blanket subsidies could revive fuel scarcity, smuggling, currency instability and fiscal difficulties. Oyedele added that Nigeria’s petrol prices remained below those in several African countries.
However, economic experts offered differing views on the intervention. Centre for the Promotion of Private Enterprise chief executive Muda Yusuf described the limited, time-bound relief as potentially less costly than a blanket subsidy. HighCap Securities managing director David Adonri, meanwhile, cautioned against government interference in market-driven fuel prices and called for a broader approach to tackling inflation in food, housing and healthcare.
Opposition parties, including the African Democratic Congress, Nigeria Democratic Congress and Allied Peoples Movement, criticised the package as inadequate and temporary. ADC presidential candidate Atiku Abubakar questioned what would happen after the 30-day period, while the NDC raised concerns about congestion at NNPC stations. The APM also argued that the discount would offer insufficient relief against prevailing petrol prices of about N1,400 per litre.
