Former Vice President Atiku Abubakar, the Obidient Movement, the Nigeria Democratic Congress (NDC) and the presidential campaign organisation of Oyo State Governor Seyi Makinde have criticised the Federal Government’s plan to offer discounted petrol for 30 days, describing the initiative as inadequate and politically motivated.
The criticism followed Thursday’s announcement that the Nigerian National Petroleum Company Limited (NNPC) would temporarily forgo its retail profit margin to sell petrol at a lower price, with priority given to public transport operators. The Federal Government said the move, supported by President Bola Tinubu, was intended to ease the impact of rising global crude oil prices without reinstating the petrol subsidy removed on May 29, 2023.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said NNPC would sell petrol at cost at its filling stations nationwide during the 30-day period. However, the exact discount per litre has not been determined, as the company is expected to calculate the reduction based on its operating costs and margins.
Opposition Parties Question Timing and Impact
Atiku Abubakar rejected the proposal, describing it as a “panic-driven publicity stunt”. In a statement issued by Phrank Shaibu, Director of Strategic Communication of the African Democratic Congress Presidential Campaign Council, the former vice president questioned the sustainability of the intervention and its impact after the 30-day period.
Atiku asked what Nigerians should expect when the discount expires, arguing that households would continue to face high fuel prices, expensive transportation and rising food costs. He also questioned why the reduction would be limited to NNPC stations, the absence of a confirmed discount per litre and the lack of guarantees that commercial transport operators would transfer the savings to passengers.
He said the announcement supported his proposal for capped and budgeted production assistance for locally refined petrol, backed by safeguards to ensure consumers benefit. Atiku maintained that Nigerians needed lasting relief rather than a temporary measure followed by a return to prevailing prices.
The Obidient Movement also questioned the timing of the policy, suggesting it could be linked to the 2027 general elections. Its Director of Media and Communications, Onyeka Dike, asked why the government had waited more than three years after subsidy removal before introducing a measure to reduce petrol costs.
Dike argued that Nigerians had endured high fuel prices, increased taxes, rising tuition fees and escalating food costs since the subsidy was removed. The movement urged citizens not to be swayed by a short-term discount, insisting that affordable fuel, food and education required sustainable policies.
The Nigeria Democratic Congress similarly rejected the proposal, describing it as “tokenism and a Greek gift”. Its National Publicity Secretary, Osa Director, said the intervention would not address the wider economic consequences of subsidy removal, including job losses and business closures.
Director also questioned whether NNPC filling stations could adequately serve the population, warning that limiting the discount to the company’s outlets could cause congestion and create safety concerns. The party urged Nigerians to support Peter Obi and other NDC candidates in the 2027 elections.
Makinde’s Allied Peoples Movement Presidential Campaign Organisation also described the initiative as deceptive and insufficient. In a statement by its Director of Strategic Communications, Richard Ihediwa, the organisation criticised what it described as a N60-per-litre discount, arguing that the reduction was too small compared with previous petrol price increases.
The campaign organisation questioned why the government had implemented substantial increases in petrol prices but was now offering what it called a marginal reduction. It also argued that restricting the discount to NNPC-owned stations for one month would do little to address the rising cost of living.
Presidency Says Discount Is Not a Subsidy
Responding to the criticism, the Presidency said the arrangement was not a return to the former petrol subsidy regime or a form of price control.
In a statement signed by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the government said NNPC Retail would sell petrol at its landing cost, particularly to commercial transport operators, as part of efforts to cushion households against the global fuel price crisis.
The statement explained that if NNPC’s landing cost was N1,300 per litre, the company would sell at that price rather than add its retail profit margin. The government is also negotiating a ceiling of N1,350 per litre for petrol’s ex-gantry or landing cost to reduce sharp price fluctuations.
Under the proposed arrangement, refiners and importers would initially bear costs above the ceiling and recover the shortfall later when crude oil prices or exchange rates improved. The Presidency said the mechanism was designed to smooth out price changes over time rather than suppress market prices.
The government also said it was working with state governments and security agencies to curb multiple road taxes and levies that contribute to higher transport fares and logistics costs. Other measures include increased funding for cash transfers to vulnerable households, subsidised credit for small businesses and consumers, and the expansion of compressed natural gas (CNG) deployment.
According to the Presidency, CNG costs between 60 and 70 per cent less than petrol, and transport operators are expected to pass the savings on to passengers through lower fares.
The government also said it could consider an excess-profit tax on operators found to have taken undue advantage of consumers across the energy value chain. Revenue from such a measure would be used exclusively to support fuel affordability through transport assistance or vouchers for urban minimum-wage earners.
Additional plans include working with the National Assembly to introduce enhanced tax relief for low-income earners under the 2027 Finance Bill, improving traffic management to reduce fuel consumption and using NIPOST’s newly introduced address codes to make logistics more efficient.
The Presidency maintained that restoring a blanket petrol subsidy would create longer-term economic problems, including fuel scarcity, smuggling, currency pressure and fiscal instability. It said the government’s objective was to ensure that the benefits of its economic reforms reached more Nigerians through targeted interventions.
Petroleum Analyst Welcomes Move but Wants Lower Price Ceiling
The Chief Executive Officer of PetroleumPrice.ng, Jeremiah Olatide, described the 30-day discount as a positive step that could help stabilise petrol prices and provide some relief to consumers.
However, he said the proposed N1,350-per-litre ceiling for landing or ex-gantry costs was too high and called on the government to reduce it to N1,000 per litre.
Olatide said direct intervention in petrol pricing could have a meaningful effect on consumers, but warned that the proposed benchmark would remain unaffordable for many Nigerians. He expressed hope that the government would review the ceiling downwards following public calls for lower prices.
Expert Warns of Possible Hidden Subsidy
Professor Emeritus of Petroleum Economics at the LAU Energy Institute, Executive Director of the Emmanuel Egbogah Foundation and Chairman of the NOGEP Forum, Wumi Iledare, said the intervention could be economically justified if it remained targeted, temporary and transparent.
Iledare said the primary objective should be to reduce transportation and logistics costs and their effect on household expenses and consumer prices, rather than artificially keeping petrol prices low. He supported giving priority to public transport operators, provided the savings were passed on to passengers.
However, he warned that the arrangement could become another form of subsidy if NNPC sold petrol below its economic cost and was later reimbursed by the government, or if the company accumulated liabilities that taxpayers would eventually have to bear.
He said the arrangement would be different if NNPC financed the discount from a clearly defined commercial margin without creating future obligations for the government.
Iledare called for the disclosure of the discount per litre, the volume of petrol covered, the source of funding, the maximum fiscal exposure and the mechanisms for ensuring passengers benefit. He also urged the government to explain the financial implications of the proposed landing-cost ceiling, particularly if fluctuations in crude oil prices or exchange rates resulted in losses.
The petroleum economist warned against giving NNPC a lasting pricing advantage over other fuel marketers, saying such a move could weaken competition in the downstream market. He stressed that any intervention should be fiscally limited, independently audited, explicitly temporary and supported by a clear exit plan.
Oyedele Says Discount Amount Is Yet to Be Fixed
Oyedele later clarified that the precise discount per litre had not been finalised. He explained that NNPC would determine the amount based on its operating costs and margins, adding that the reduction could be higher or lower than N60 per litre.
The minister said the policy would be reviewed after 30 days and expressed hope that other fuel marketers would voluntarily reduce their margins. He also reiterated the plan to negotiate a N1,350-per-litre ceiling on petrol’s ex-gantry or landing cost.
Oyedele attributed the rise in petrol prices from about N830 to an average of N1,400 per litre to the conflict in the Middle East. He warned that restoring the former subsidy could cost the country more than N20tn annually.
He further disclosed that subsidy removal had released N15.8tn into the Federation Account between June 2023 and December 2025. According to him, the government also waived more than N3.3tn in petrol taxes and duties between January and September 2026.
The minister said the administration would continue to pursue targeted measures, including cash transfers, subsidised credit, accelerated CNG deployment and a proposed National Strategic Fuel Reserve, rather than restore a blanket subsidy.
NNPC Confirms Discounting Has Started
The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, confirmed that the company had commenced petrol price discounts following approvals obtained around the October 1 Independence Day celebration.
Ojulari said NNPC was prepared to prioritise economic stability and consumer welfare over immediate profitability.
Meanwhile, the Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismael Ahmed, disclosed that about 120,000 vehicles had been converted to CNG. He said conversion costs ranged from N230,000 to N580,000.
The Executive Secretary of the Joint Tax Board, Olusegun Adesokan, said 20 states had adopted the harmonised taxes and levies framework aimed at reducing multiple taxation.
The Comptroller-General of Customs, Adewale Adeniyi, also disclosed that import duties had been reduced from 20 to 10 per cent for new vehicles and from 15 to five per cent for used vehicles. He highlighted ongoing efforts to tackle petroleum smuggling.
Petroleum Minister Defends Deregulation
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, defended the removal of the petrol subsidy, saying deregulation had encouraged private investment in domestic refining, including the Dangote Refinery.
Lokpobiri also argued that restoring the subsidy would be illegal under the Petroleum Industry Act, which requires petroleum products to be priced according to market forces.
He warned political actors against promising a return to the subsidy regime, saying any president would be required to uphold Nigeria’s laws.
The Minister of Information and National Orientation, Mohammed Idris, said the administration’s economic reforms were designed to strengthen public finances and improve living standards, although more work was needed to ensure Nigerians felt the benefits.
Earlier, the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, called for stronger coordination among government agencies to eliminate overlapping responsibilities and unnecessary regulatory costs.
The proposed 30-day discount has therefore drawn sharply different reactions, with the government presenting it as temporary relief within the broader deregulated market, while opposition groups and some experts are questioning its adequacy, transparency and long-term impact on fuel prices and household costs.
SOURCE: PUNCH
