The Presidency has ruled out the possibility of restoring petrol subsidy, insisting that the Federal Government’s 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) retail stations is a temporary relief measure and not a return to government-funded fuel subsidies.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, stated this while responding to criticism from the African Democratic Congress (ADC) and the Nigeria Democratic Congress (NDC) over the initiative.
In a post on X, Onanuga urged the opposition parties to study the explanation provided by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on the difference between a retail margin discount and a government-funded petrol subsidy.
“The ADC and NDC should carefully re-read this ministerial brief: Margin Discount and a Subsidy Are Not the Same,” Onanuga wrote.
Presidency Explains Difference Between Petrol Discount and Subsidy
According to Onanuga, petroleum marketers typically include a profit margin in the prices at which they sell fuel to consumers.
He explained that a margin discount occurs when a retailer agrees to reduce or temporarily forgo its profit margin, passing the savings to customers without requiring the government to pay the difference.
“Every marketer adds a margin to the price it pays for the fuel it sells. A margin discount means the retailer chooses to take a smaller margin, or no margin at all for a period, and passes the saving to the customer. The cost of the discount is borne by the retailer alone,” he stated.
The presidential spokesman contrasted this arrangement with the petrol subsidy system discontinued by the Tinubu administration in May 2023.
He said a subsidy involves the government paying part of the cost of a product on behalf of consumers using public revenue that could otherwise fund public services and infrastructure.
“That is the regime this administration ended in 2023, and it is not coming back,” Onanuga added.
ADC, Atiku Abubakar Criticise Petrol Discount
The Presidency’s clarification followed criticism from the ADC, which described the temporary discount as an inadequate response to the economic hardship Nigerians have experienced since the removal of petrol subsidy.
The party’s Presidential Campaign Council, through its media representatives Kola Ologbondiyan and Phrank Shaibu, reportedly criticised the proposed N1,350-per-litre arrangement, describing it as an attempt to influence Nigerians ahead of the 2027 general election.
Former Vice President Atiku Abubakar, the ADC’s presidential candidate, also condemned the initiative, describing the 30-day discount as a “panic-driven publicity stunt.”
Atiku argued that a temporary reduction in petrol prices would not adequately address the rising cost of living and called for more sustainable economic measures.
The ADC has also questioned the government’s communication around the policy, arguing that Nigerians need clear and lasting solutions to rising transportation, food and healthcare costs.
NDC Questions Effectiveness of NNPC Discount
The Nigeria Democratic Congress also criticised the initiative, describing it as “tokenism and a Greek gift.”
The party’s National Publicity Secretary, Osa Director, questioned why the government was offering temporary relief after ending petrol subsidy without providing what the party considered sufficient support for affected Nigerians.
The NDC also raised concerns about implementation, arguing that concentrating the discount at selected NNPC retail outlets could lead to long queues, congestion and potential safety risks.
The party maintained that the initiative would not resolve the country’s broader economic difficulties and urged Nigerians to consider political alternatives ahead of the 2027 elections. Peter Obi is the NDC’s preferred presidential candidate, according to the supplied report.
NNPC Extends Petrol Discount Until October 31
Meanwhile, NNPC Limited has announced that its petrol discount, initially introduced on October 1 to mark Nigeria’s 66th Independence Anniversary, will continue until October 31, 2026.
In a statement issued on Friday, October 9, and signed by its Chief Corporate Communications Officer, Andy Odeh, the company said the initiative was designed to provide temporary relief to households, businesses and other customers facing higher fuel prices.
NNPC attributed pressure on domestic petrol prices partly to elevated global crude oil prices associated with the conflict in the Middle East.
The company stressed that the discount applies to its retail outlets and does not establish a uniform national pump price or alter the market-based pricing framework for petroleum products.
“This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy,” NNPC stated.
The clarification followed an announcement by Oyedele that NNPC Retail would forgo its retail profit margin and sell petrol at cost for an initial 30-day period, with priority given to public transport operators.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance with priority for public transporters nationwide. So, it’s not a subsidy, government is just saying we sell to you at cost,” Oyedele said.
Government Considers Additional Measures to Ease Fuel Prices
Beyond the NNPC discount, the Federal Government has disclosed plans to negotiate a proposed ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.
Under the proposal, refiners and importers would initially bear any difference if actual costs exceeded the proposed ceiling, with the possibility of recovering the shortfall later when crude oil prices or exchange rates became more favourable.
Oyedele said the arrangement was intended to moderate price fluctuations over time rather than introduce a subsidy or impose fixed prices.
Other proposed measures include facilitating forward sales of crude oil to domestic refineries, increasing funding for cash transfers to vulnerable households, expanding subsidised credit for small businesses and consumers, and accelerating the adoption of compressed natural gas for transportation.
The government is also considering reducing road taxes and levies that contribute to transportation costs, introducing an excess-profit tax for operators found to be taking undue advantage of consumers, and providing additional tax relief for low-income earners under the proposed 2027 Finance Bill.
Plans to establish a National Strategic Fuel Reserve are also under consideration, with the aim of protecting Nigeria against future energy supply disruptions, artificial scarcity and sudden price increases.
For now, the Presidency maintains that the NNPC discount is a temporary commercial relief measure and does not signal a reversal of the May 2023 petrol subsidy removal. Opposition parties, however, continue to question whether the initiative will provide meaningful relief from the rising cost of living.