The Presidency has defended the Federal Government’s 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) retail outlets, insisting that the measure does not amount to a return of the fuel subsidy regime abolished in May 2023.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, explained the government’s position in a statement dated October 8, 2026, saying NNPC Retail would temporarily forgo its profit margin and sell petrol at cost.
The statement, published on the State House website on October 9, 2026, said the arrangement was intended to cushion households against rising global crude oil prices and market volatility.
“NNPC Retail, which already sells petrol at the lowest price in the market, will offer this new deal within the next 30 days,” Onanuga said.
He explained that if NNPC’s landing cost for petrol was ₦1,300 per litre, the company would sell it at that price without adding its retail profit margin. Public transport operators would receive priority under the arrangement.
The Presidency maintained that a margin discount differs from a subsidy because the retailer bears the cost by surrendering some or all of its profit margin, rather than the government paying part of the consumer’s fuel bill.
The government also announced plans to negotiate a ceiling of ₦1,350 per litre on petrol landing costs. Under the proposed arrangement, refiners and importers would initially absorb costs above the ceiling and recover the difference when market conditions improved.
Finance Minister Taiwo Oyedele said the ceiling would be reviewed monthly and that the figures would be published for transparency.
The Federal Government also listed forward sales of crude oil to domestic refineries, expanded compressed natural gas (CNG) deployment, increased support for vulnerable households and measures to reduce transportation and logistics costs among its planned interventions.
The announcement has drawn criticism from opposition figures who question whether the temporary discount will provide lasting relief.
Former Vice-President Atiku Abubakar, the African Democratic Congress presidential candidate, described the initiative as a “panic-driven publicity stunt” in a statement issued through his campaign spokesman, Phrank Shaibu, on October 8.
Atiku questioned what would happen after the 30-day period, arguing that Nigerians would continue to face high transport fares and food prices unless the government introduced more sustainable measures.
He also called for capped and budgeted production support for domestically refined petrol, with safeguards to ensure that consumers benefit.
The Nigeria Democratic Congress also rejected the intervention, describing it as “tokenism and deceit” and accusing the government of attempting to reintroduce subsidy indirectly. The party questioned whether limiting the discount to NNPC outlets would lead to overcrowding.
The Obidient Movement also criticised the timing of the announcement, while the presidential campaign organisation of Oyo State Governor Seyi Makinde questioned the limited duration and scope of the intervention.
The Presidency maintains that the discount is a commercial decision by NNPC Retail rather than a restoration of the former subsidy regime. Whether the temporary arrangement delivers substantial relief to consumers will depend on the prices charged at participating outlets and what follows when the 30-day period ends.
