Introduction

The Nigerian presidency has firmly ruled out a return to fuel subsidy, instead committing to a N1,350 per litre cost ceiling backed by NNPCL policy adjustments. The administration says the measures are designed to protect households from global oil price swings while keeping the reform agenda on track.

What Happened

Presidential spokesperson Bayo Onanuga announced that NNPC Retail will forgo its profit margin and sell petrol at cost for the next 30 days, particularly targeting commercial transport operators. The government also plans forward sales of crude to domestic refineries to stabilize supply, and will enforce a N1,350 per litre ceiling on ex-gantry landing costs. If prices rise above the ceiling, refiners and importers must cover the difference later when market conditions improve. The ceiling will be reviewed monthly and published transparently.

Why This Matters

Officials argue that returning to the old subsidy regime would re-trigger scarcity, currency pressure, and fiscal strain, especially at a time when reform results are gaining momentum. Instead, the government is rolling out cash transfers, expanded CNG deployment, and an excess profit tax on price gougers to directly support vulnerable Nigerians without distorting the market.

Key Takeaways

  • NNPC Retail will sell petrol at cost for 30 days, forgoing its margin to ease immediate pressure on households.
  • A N1,350 per litre ceiling on ex-gantry landing costs will be enforced, reviewed monthly, and published for transparency.
  • If prices exceed the ceiling, refiners and importers must absorb the difference until market conditions improve.
  • Cash transfers and subsidised credit will expand support for vulnerable households and small businesses.
  • A nationwide CNG rollout aims to offer fuel at 60–70 per cent less than petrol prices.
  • An excess profit tax on price gougers will fund transport vouchers for urban minimum-wage earners.

Conclusion

The administration maintains that its interventions are not a subsidy reversal but a targeted support framework designed to cushion volatility while preserving the benefits of deregulation. With monthly reviews, transparent pricing, and broader fiscal measures underway, the government says it is committed to delivering stable energy costs and protecting the most affected Nigerians without derailing long-term economic reform.