FG defends NNPC petrol discount, says it’s not a return to subsidy

The Federal Government through the Minister of Information and National Orientation, Mohammed Idris, has defended the Nigerian National Petroleum Company Limited’s (NNPC) 30-day petrol discount initiative, emphasizing that the measure does not constitute a restoration of the fuel subsidy.

Speaking during a media chat with senior editors and journalists in Abuja, Idris explained that the national oil company elected to forgo a portion of its commercial profits to help alleviate the financial strain of soaring energy costs on consumers.

"The NNPC has looked at it and said 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?" Idris stated.

The policy has drawn scrutiny and criticism from various quarters, including opposition figures, labour leaders, and civil society stakeholders, who have questioned its scope, duration, and potential economic implications.

Former Vice President Atiku Abubakar publicly criticized the move, characterizing it as a politically driven intervention designed to provide short-term relief ahead of the 2027 general elections.

 Atiku also raised questions regarding whether the initiative received proper board authorization within NNPC Limited and how the financial cost would be accounted for under its commercial framework.

Additional criticisms have been voiced by figures such as Trade Union Congress (TUC) President Festus Osifo and Social Democratic Party (SDP) presidential candidate Adewole Adeboye, who questioned the practical reach of the discount given that NNPC retail stations represent only a fraction of filling outlets nationwide.

Addressing these concerns, Idris reiterated that the federal administration remains steadfast in pursuing structural economic reforms while keeping citizen welfare at the forefront. He noted that global energy volatility continues to challenge economies worldwide, prompting diverse administrative responses.

"Our approach is to consolidate the gains of these reforms, expand affordable energy alternatives, strengthen domestic production and create the conditions for sustainable reductions in the cost of living," the minister added