Opposition groups question the timing and impact of the temporary relief as the government insists NNPC’s decision to forgo retail margins is not a return to fuel subsidy.

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 planned 30-day petrol discount, describing it as inadequate and potentially politically motivated.

 The backlash followed the government’s announcement that the Nigerian National Petroleum Company Limited (NNPC) would temporarily forgo its retail profit margin to ease the pressure of rising fuel prices on households and transport operators.

Atiku, through a statement issued by his camp, described the intervention as a panic-driven publicity stunt and questioned what would happen when the 30-day period expires. 

He also challenged the decision to limit the discount to NNPC filling stations, arguing that the government had not clearly stated the amount motorists would save per litre or guaranteed that transport operators would pass the savings on to passengers. 

The Obidient Movement similarly questioned the timing, while the NDC dismissed the measure as token relief that would not reverse the wider economic hardship.

Makinde’s presidential campaign organisation also faulted the initiative, citing a reported N60 per litre reduction and arguing that it was insignificant compared with previous petrol price increases. 

The criticism came amid concerns over rising transport fares, food prices and the cost of living. 

Finance Minister Taiwo Oyedele later clarified that the exact discount had yet to be determined and would depend on NNPC’s operating costs and margins.

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The Presidency maintained that the initiative was not a return to the petrol subsidy regime abolished in May 2023. 

In a statement issued by presidential spokesman Bayo Onanuga, the government said NNPC Retail would sell petrol at its landing cost during the intervention, while officials seek to negotiate a N1,350-per-litre ceiling on petrol’s ex gantry or landing cost to limit sharp price fluctuations. 

Other planned measures include expanded cash transfers, subsidised credit, accelerated compressed natural gas (CNG) adoption and efforts to reduce multiple taxes and levies that increase transport and logistics costs.

Energy experts offered mixed assessments of the plan. PetroleumPrice.ng chief executive Jeremiah Olatide welcomed the intervention as a potential source of relief and price stability but argued that the proposed N1,350 benchmark remained too high. 

Petroleum economist Professor Wumi Iledare said a targeted, temporary intervention could be justified if it reduced transport costs, but warned that it could become a subsidy in practice if NNPC’s losses were eventually borne by taxpayers. 

He called for transparent disclosure of the discount, its funding, the volume of fuel covered and a clear exit plan.

Oyedele said the discount would be reviewed after 30 days and expressed hope that other fuel marketers would voluntarily reduce their margins. 

The government has also defended its broader reform programme, arguing that removing the blanket subsidy was necessary to ease pressure on public finances and encourage investment in domestic refining.

 However, with opposition figures questioning the intervention’s timing and durability, its success will ultimately depend on how much consumers save, whether transport fares fall and what happens when the temporary relief ends.