The Federal Government’s 30-day petrol discount has triggered opposition from former Vice-President Atiku Abubakar, organised labour and independent petroleum marketers, despite the presidency's insistence that the measure is not a return to fuel subsidy.
While the government says the initiative will provide temporary relief to Nigerians without reversing the removal of petrol subsidy in May 2023, critics have questioned its implementation, coverage and potential benefits to consumers.
In a statement issued on Thursday, October 8, President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, dismissed reports that subsidy had returned at Nigerian National Petroleum Company (NNPC) Limited retail outlets as fake news.
In a statement titled “Margin Discount and a Subsidy Are Not the Same”, Onanuga said the arrangement was designed to cushion the impact of global crude oil price fluctuations without restoring the former subsidy regime.
“Every marketer adds a margin to the price it pays for the fuel it sells. A margin discount means the retailer chooses to take a smaller margin, or no margin at all, for a period, and passes the savings on to the customer,” he said.
“The cost of the discount is borne by the retailer alone. A subsidy is different. It is when the government pays part of the price the consumer would otherwise pay.”
Onanuga said the government-funded subsidy system ended in 2023 and would not return, arguing that the former arrangement diverted public revenue from essential services, including education, healthcare and infrastructure.
The clarification followed an announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that NNPC had agreed to forgo its petrol retail profit margin and sell the product at cost for an initial period of 30 days.
The initiative gives priority to public transport operators nationwide and is intended to cushion vulnerable households against global crude oil price shocks.
The Presidency also said the government was negotiating a ceiling of N1,350 per litre on petrol’s ex-gantry or landing cost.
Other measures outlined by Onanuga included expanding compressed natural gas supply, supporting domestic refineries through forward crude sales and establishing a strategic fuel reserve. He added that proceeds from any tax imposed on price gouging would be channelled into transport support or vouchers for urban minimum-wage earners.
The government argued that a blanket subsidy could revive the problems associated with the previous system, including fuel scarcity, smuggling and pressure on public finances.
However, Atiku’s camp rejected the discount, describing it as a “calendar-scheduled, election-laced subsidy package."
In a statement by Phrank Shaibu, director of strategic communication for Atiku’s campaign council, the former vice-president described the intervention as “a political bandage on a wound the government had helped create."
Atiku’s camp questioned why the scheme was limited to NNPC stations, how much motorists would save per litre, and whether transport operators would pass the savings on to passengers through lower fares.
It also asked how residents of communities without NNPC retail outlets would benefit.
The statement cited an alleged July 2026 NNPC report that put petrol availability across the company’s retail network at 52 per cent, arguing that the limited availability could undermine the scheme’s reach.
Atiku has advocated a production-based subsidy for locally refined petrol. In August, he reiterated his position, saying, “On the question of subsidy, my position has not changed and will not change: I will restore it!”
The Presidency had previously questioned the fiscal and legal implications of his proposal.
Organised labour has also challenged the government’s approach. The Nigeria Labour Congress (NLC) issued a two-week ultimatum to the Federal Government, beginning October 9, demanding a reduction in petrol prices to the level at which the 2024 national minimum wage was negotiated.
The NLC also demanded the implementation of previously agreed tax relief for workers and immediate wage awards, describing the measures as necessary to restore workers’ dignity.
Meanwhile, a campaign team supporting Oyo State Governor Seyi Makinde’s presidential bid described the petrol discount announcement as deceitful.
Independent petroleum marketers have raised concerns about their exclusion from the arrangement.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said its members must benefit directly through discounted supplies from NNPC.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, warned that proceeding without the independent marketers would amount to “putting the cart before the horse”.
The dispute reflects the continuing political and economic sensitivity surrounding petrol pricing since Tinubu announced the end of the subsidy at his inauguration in May 2023.
The Trade Union Congress (TUC) had warned at the time that the President could not remove the subsidy unilaterally, while fuel queues resurfaced across the country following the announcement.
By June 2024, the government was still describing the subsidy era as “gone for good”, dismissing leaked documents that suggested otherwise. Nevertheless, the latest discount has revived public debate over whether the distinction between a retailer-funded price reduction and a government-funded subsidy offers meaningful relief to consumers.
The Presidency has yet to disclose the exact savings motorists will enjoy per litre or explain what will happen when the 30-day discount expires.
The NLC’s two-week ultimatum is due to run around the same period, leaving the government under pressure to clarify whether further measures will follow the temporary intervention.
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