Nigerian Govt Unveils 10-Point Fuel Price Relief Plan
The Federal Government has unveiled a 10-point intervention package to cushion Nigerians from rising petrol prices, including a 30-day discount at NNPC stations, a proposed ₦1,350-per-litre ceiling on petrol landing costs and increased support for vulnerable households and small businesses.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measures on Thursday in Abuja while briefing journalists on fuel prices and the subsidy question.
Oyedele said the measures were designed to provide immediate and targeted relief while avoiding a return to a blanket petrol subsidy.
Under the proposed price-modulation mechanism, the government is negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol, with the figure subject to monthly review and publication.
The minister stressed that the ₦1,350 figure would not be the retail pump price. Rather, the arrangement is intended to moderate sudden increases caused by fluctuations in global crude prices and foreign exchange rates.
Where costs rise above the ceiling, refiners and importers would initially carry the difference and recover it when market conditions improve, according to Oyedele. He described the arrangement as neither a subsidy nor conventional price control, but a mechanism for smoothing price volatility.
30-Day NNPC Petrol Discount
As an immediate intervention, the government will offer a 30-day margin discount on petrol sold at NNPC Limited stations, with priority given to public transporters nationwide.
Oyedele said the arrangement was intended to provide temporary relief without returning to the previous subsidy regime.
The government is also exploring forward sales of crude oil to domestic refineries as production increases and previously committed crude becomes available. The move is expected to provide local refiners with greater supply certainty and reduce exposure to global market volatility.
FG Targets Illegal Levies, Transport Costs
The government will work with state governments under the 2025 tax reform laws to eliminate illegal road taxes and levies that contribute to higher transportation and logistics costs.
It will also increase funding for cash transfers to vulnerable households and provide additional subsidised credit for small businesses and consumers.
The Federal Government plans to accelerate the rollout of compressed natural gas (CNG) in collaboration with states, with transport operators expected to pass lower operating costs on to passengers through reduced fares.
Excess Profit Tax Under Consideration
Oyedele said the government was considering an excess profit tax for operators along the energy value chain who take undue advantage of consumers.
Any proceeds, he said, would be used specifically for transport support and targeted vouchers for vulnerable low-income earners.
The government is also considering enhanced tax relief for low-income earners under the 2027 Finance Bill.
National Strategic Fuel Reserve Planned
Another measure is the establishment of a National Strategic Fuel Reserve to strengthen Nigeria’s ability to respond to future supply disruptions and instances of hoarding.
Under the proposed system, petroleum products would be released according to published rules when market disruptions threaten supply.
The government will also reduce regulatory costs and red tape that add to the cost of doing business and ultimately increase prices of goods and services.
Traffic, Logistics Reforms
Oyedele said improved traffic management would help reduce fuel consumption, while the government plans to leverage NIPOST address codes to lower logistics and delivery costs.
The minister said the measures would be implemented in collaboration with state governments to ensure that relief reaches households, commuters and businesses without placing additional pressure on the wider economy.
The government has maintained that the new interventions are targeted and temporary measures rather than a return to blanket petrol subsidy.
