The Federal Government has defended the Nigerian National Petroleum Company Limited’s (NNPC) 30-day petrol discount initiative, insisting that the measure does not amount to a return to fuel subsidy.
The Minister of Information and National Orientation, Mohammed Idris, explained that the initiative was designed to provide temporary relief to Nigerians amid rising energy costs, with NNPC choosing to forgo part of its commercial profits rather than rely on public funds to reduce petrol prices.
Idris made the clarification on Monday, October 12, during an interactive media engagement with senior editors and journalists in Abuja.
According to the minister, the national oil company decided to sacrifice part of its profit margin to cushion the impact of rising fuel prices on households and businesses.
“The NNPC has looked at it and said, ‘Okay, we are making this much profit. Why can’t we forgo some of the profit that we are making, so that Nigerians will have some form of cushioning?’” he said.
The discount was initially introduced on October 1, 2026, to commemorate Nigeria’s 66th Independence Anniversary. NNPC subsequently announced that the N66-per-litre discount would continue until October 31 across its retail filling stations nationwide.
The initiative has, however, attracted criticism from opposition politicians, labour leaders and other stakeholders, who have questioned its effectiveness, duration and accessibility to Nigerians who purchase petrol from other filling stations.
Former Vice President Atiku Abubakar criticised the measure, questioning its sustainability and the arrangements for covering its financial implications. He also raised concerns about whether the initiative would provide meaningful relief beyond the 30-day period.
Other critics have argued that the discount offers only temporary relief and does not address the underlying factors responsible for high petrol prices.
Responding to the concerns, Idris maintained that the Federal Government remained committed to its economic reform programme while seeking ways to ease the financial burden on citizens.
He acknowledged the economic pressures facing households and businesses, adding that the administration’s priority was to ensure that improvements in the economy translated into tangible benefits for Nigerians.
The minister also said the government would continue to pursue measures aimed at strengthening domestic production, expanding access to affordable energy alternatives and improving living conditions.
NNPC has similarly maintained that the discount is a commercial customer-relief initiative and does not represent the reintroduction of petroleum subsidy. The company clarified that the arrangement applies to its retail outlets and does not establish a uniform petrol price nationwide.
The Federal Government removed petrol subsidy in May 2023 as part of its economic reforms under President Bola Tinubu.
