ATIKU, OBIDIENT MOVEMENT FAULT TINUBU’S 30-DAY PETROL DISCOUNT PLAN

By: Fasasi Hammad

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 proposed 30-day petrol discount, describing the initiative as inadequate and politically motivated.

The Federal Government announced on Thursday that the Nigerian National Petroleum Company Limited (NNPC) would temporarily forgo its retail profit margin to sell petrol at a discounted price in a bid to cushion Nigerians against the impact of rising global crude oil prices.

The Presidency, however, maintained that the initiative, backed by President Bola Tinubu, did not amount to a return to the petrol subsidy regime, which was discontinued on May 29, 2023.

The announcement has generated mixed reactions among energy experts, with some welcoming the temporary relief while others warned that the arrangement could amount to another form of subsidy if its financial implications were not transparently managed.

FG EXPLAINS 30-DAY PETROL DISCOUNT

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced that NNPC would offer discounted petrol at its filling stations nationwide for 30 days, with priority given to public transport operators.

Oyedele explained that the company would temporarily waive its profit margin to sell petrol at cost rather than reinstate the discontinued subsidy regime.

“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days, with priority for public transporters nationwide,” he said.

In a statement issued by Phrank Shaibu, Director of Strategic Communication of the African Democratic Congress Presidential Campaign Council, Atiku described the initiative as a “panic-driven publicity stunt.”

The former vice-president criticised the timing and duration of the intervention, arguing that a one-month discount would do little to address the prolonged economic hardship faced by Nigerians.

Atiku questioned what would happen when the 30-day period expired, warning that citizens could return to paying high petrol prices, transport fares and food costs.

He also raised concerns about restricting the discount to NNPC filling stations, the absence of a confirmed reduction per litre and the lack of guarantees that transport operators would transfer the savings to passengers.

Atiku maintained that his proposal for production support tied to locally refined petrol offered a more sustainable alternative.

He advocated capped and budgeted support for domestically refined petrol, with safeguards to ensure that consumers benefit directly.

“Nigerians need lasting relief, not a countdown to the return of hardship,” he said, adding that the government should prioritise long-term solutions rather than temporary interventions.

The Obidient Movement also faulted the initiative, suggesting that its timing could be connected to the 2027 general elections.

In a statement by its Director of Media and Communications, Onyeka Dike, the movement questioned why the government had waited more than three years after removing the petrol subsidy before introducing measures aimed at reducing fuel costs.

Dike argued that Nigerians had endured high petrol prices, increased taxes, rising tuition fees and escalating food costs since the subsidy was removed.

He described the hardship as the result of policy decisions and urged Nigerians not to be swayed by temporary relief measures.

The movement called for sustainable access to affordable fuel, food and education, insisting that a 30-day discount could not erase years of economic hardship.

The Nigeria Democratic Congress also rejected the proposed discount, describing it as “tokenism and a Greek gift” from a government that removed the petrol subsidy without adequate consultation or measures to cushion its impact.

The party’s National Publicity Secretary, Osa Director, argued that the intervention would not reverse the economic consequences of subsidy removal, including job losses and business closures.

He also questioned whether NNPC filling stations could adequately serve the population, warning that limiting the discount to the company’s outlets could result in congestion and stampedes.

The party accused the government of attempting to reintroduce petrol subsidy through the back door and urged Nigerians to support Peter Obi and other NDC candidates in the 2027 elections.

The presidential campaign organisation of Oyo State Governor Seyi Makinde, identified in the report as the Allied Peoples Movement Presidential Campaign Organisation, also described the intervention as deceptive and inadequate.

In a statement issued 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 insignificant compared with previous increases in petrol prices.

It questioned why the government had introduced only a marginal reduction after substantial increases in the pump price of petrol.

The organisation further argued that restricting the discount to NNPC-owned filling stations for just one month showed that the administration had yet to provide a lasting solution to rising living costs.

It maintained that Nigerians needed a substantial reduction in petrol prices rather than what it described as an attempt to influence public opinion ahead of the 2027 elections.

In a statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency said NNPC Retail would implement the arrangement within 30 days.

According to the statement, the company would sell petrol at its landing cost, particularly to commercial transport operators, by temporarily foregoing its profit margin.

The Presidency also disclosed that the Federal Government was negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to help stabilise pump prices.

Under the proposed arrangement, refiners and importers would bear costs exceeding the ceiling and recover the shortfall later when crude oil prices or exchange rates improved.

Oyedele maintained that the initiative was designed to moderate price fluctuations rather than artificially suppress petrol prices.

He explained that keeping prices relatively stable would help reduce uncertainty for households and businesses, noting that transport fares often rise sharply but do not fall as quickly when fuel prices decline.

The minister added that the price ceiling would be reviewed monthly, with adjustments made according to prevailing costs and the figures published for transparency.

Beyond the petrol discount, the Federal Government announced several measures aimed at reducing transport and logistics costs and easing the pressure on households.

These include plans to sell crude oil forward to domestic refineries, increase funding for cash transfers to vulnerable households and expand access to subsidised credit for small businesses and consumers.

The government also said it was accelerating the deployment of compressed natural gas (CNG) in collaboration with state governments, with the expectation that transport operators would pass the savings on to passengers through lower fares.

The Presidency stated that CNG was between 60 and 70 per cent cheaper than petrol.

Other proposed measures include enhanced tax relief for low-income earners under the 2027 Finance Bill, improved traffic management to reduce fuel consumption and efforts to curb multiple road taxes and levies that increase transport costs.

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. Proceeds would be directed towards fuel-related transport support or vouchers for urban minimum-wage earners.

The Presidency insisted that the measures were not intended to restore a blanket petrol subsidy, warning that such a move could create long-term economic problems.

The Chief Executive Officer of PetroleumPrice.ng, Jeremiah Olatide, described the 30-day discount as a positive development that could stabilise petrol prices and provide relief to Nigerians.

However, he criticised the proposed N1,350-per-litre landing-cost ceiling, arguing that it was too high and should be reduced to N1,000.

Olatide said the intervention represented a shift towards direct action on petrol pricing and could benefit consumers if properly implemented.

He expressed hope that the government would review the proposed ceiling downwards in response to public concerns.

Meanwhile, Wumi Iledare, Professor Emeritus of Petroleum Economics at the LAU Energy Institute, Executive Director of the Emmanuel Egbogah Foundation and Chairman of the NOGEP Forum, said the intervention could be economically justified if it remained temporary and targeted.

Iledare said the main objective should be to reduce transport costs and their effects on logistics, household expenses and consumer prices, rather than artificially keeping petrol prices low.

He supported prioritising public transport operators, provided the savings were passed on to passengers.

However, he warned that the initiative could effectively become another subsidy if NNPC sold petrol below its economic cost and was later reimbursed by the government or accumulated liabilities ultimately borne by taxpayers.

He called for transparency regarding the discount per litre, the volume of petrol covered, the source of financing, the government’s maximum financial exposure and the mechanisms for ensuring that passengers benefit.

Iledare also warned against giving NNPC a permanent pricing advantage over other marketers, saying such an arrangement could undermine competition in the downstream petroleum sector.

He stressed that the success of the initiative would depend on transparent financing, effective monitoring, clear limits on public spending and a defined exit plan.

Oyedele clarified that the exact discount per litre had yet to be determined, explaining that NNPC would calculate the reduction based on its operating costs and profit margins.

He said the initiative would be reviewed after 30 days and expressed hope that other marketers would voluntarily reduce their margins.

The minister attributed the increase in petrol prices from about N830 to an average of N1,400 per litre to the conflict in the Middle East.

He also warned that restoring the petrol subsidy could cost more than N20 trillion annually.

According to Oyedele, subsidy removal released N15.8 trillion into the Federation Account between June 2023 and December 2025, while the government waived more than N3.3 trillion in petrol taxes and duties between January and September 2026.

The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, confirmed that the company had commenced discounting petrol prices following approvals obtained around the October 1 Independence Day celebration.

He said NNPC was prepared to prioritise economic stability and consumer welfare over immediate profitability.

Other officials highlighted complementary measures, including the conversion of approximately 120,000 vehicles to CNG, the harmonisation of taxes and levies in 20 states, and reductions in import duties on new and used vehicles.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, defended subsidy removal, arguing that deregulation had encouraged private investment in domestic refining, including the Dangote Refinery.

Lokpobiri also maintained that restoring the petrol subsidy would be illegal under the Petroleum Industry Act, which requires petroleum products to be priced according to market forces.

The Minister of Information and National Orientation, Mohammed Idris, said the administration’s economic reforms were intended to strengthen public finances and improve living standards, while acknowledging that more work was needed to ensure Nigerians experienced the benefits.

The government reiterated its commitment to targeted relief measures, insisting that the objective was to make the benefits of economic reforms reach more Nigerians without reversing the subsidy removal policy.