Nigerians have called on the Federal Government to explain how savings from the removal of petrol subsidies have been spent, following its announcement of a 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) retail stations.
The Civil Society Legislative Advocacy Centre (CISLAC) urged the government to provide details of the savings generated since subsidy removal, the financing of the temporary discount and the measures planned to cushion the impact of rising fuel and transportation costs.
CISLAC Executive Director and Head of Transparency International Nigeria, Auwal Musa Rafsanjani, said Nigerians deserved clarity on the proposed intervention, including its total cost and what would happen when the 30-day period expired.
The Federal Government announced the discount as part of measures to ease the burden of rising petrol prices on households and businesses. Finance Minister Taiwo Oyedele said NNPC Retail would forgo its retail profit margin and sell petrol at cost for an initial 30-day period, with public transport operators receiving priority.
The government maintained that the initiative was not a return to the petrol subsidy regime, which was discontinued in 2023. According to Oyedele, the discount would be funded by NNPC Retail through a reduction in its profit margin rather than through the Federal Government’s budget or the Federation Account.
However, concerns have emerged over whether the intervention will provide meaningful and lasting relief. Critics have questioned the duration of the discount, its coverage and the absence of a clear explanation of how consumers would be protected when the initiative ends.
The Trade Union Congress President, Festus Osifo, argued that a price cap could amount to a form of subsidy if the government absorbed the difference between the market price and the capped price. Social Democratic Party presidential candidate Adewole Adeboye also questioned the policy’s structure and funding arrangements.
Former Vice-President Atiku Abubakar separately criticised the initiative, describing it as temporary relief that would not resolve the underlying pressures driving up transportation and food prices. He questioned what would happen after the 30-day period.
The debate comes amid continued public concern over the cost of living since the removal of the petrol subsidy in May 2023. In July, the government acknowledged that much of the financial benefit from subsidy removal and foreign-exchange reforms had been offset by higher debt-servicing costs and increased government expenditure.
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