The Federal Government on Thursday announced a raft of 10 fiscal and administrative measures to cushion the impact of rising global crude oil prices on Nigerian households and commercial transporters.
In a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the government disclosed that the Nigerian National Petroleum Company (NNPC) Limited has agreed to forgo its petrol retail profit margins and sell at cost price for the next 30 days.
The relief measures, approved by President Bola Ahmed Tinubu, were detailed during a briefing in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Key Measures Announced in the Statement:
NNPC Profit Forfeiture: NNPC Retail will sell petrol at landing cost across its stations nationwide for 30 days without adding any retail margin.
Forward Sales of Crude: The government will execute forward crude sales to local refiners to protect domestic pump prices from global market swings.
Ex-Gantry Price Ceiling: A temporary ceiling of ₦1,350 per liter on landing costs is being negotiated with refiners and importers, who will absorb and later recover any shortfalls when market conditions normalize.
Crackdown on Road Levies: Authorities are enforcing provisions under the 2025 tax reform laws to eliminate illegal road taxes and informal transport levies that inflate commuter fares.
Faster CNG Rollout: Deployment of Compressed Natural Gas (CNG) is being accelerated nationwide to deliver 60–70% fuel cost savings to commercial transporters and commuters.
Excess Profit Tax: An excess profit tax will be considered for operators engaging in price gouging, with proceeds dedicated to funding transport vouchers for urban minimum-wage earners.
National Strategic Fuel Reserve: Investment is being directed into a national fuel reserve to release refined products during supply shocks or artificial scarcity.
Cutting Regulatory Red Tape: Administrative costs and regulatory charges feeding into consumer prices are being reduced across the board.
Expanded Cash Transfers & Tax Relief: Funding for cash transfers to vulnerable households and credit for small businesses is being scaled up, alongside planned tax relief under the 2027 Finance Bill.
Logistics & Traffic Flow: Traffic agencies are improving urban traffic management to minimize fuel waste, alongside NIPOST’s new digital address codes to streamline logistics costs.
Presidency Reaffirms Commitment to ReformsAddressing concerns over energy costs, Finance Minister Taiwo Oyedele emphasized that these temporary interventions do not mark a return to petrol subsidies, which ended on May 29, 2023.
”This is neither a subsidy nor a price control: it is designed to smooth prices over time rather than suppressing them,” Oyedele stated.
Reaffirming the administration’s policy stance, Onanuga’s statement stressed that the government remains committed to fuel subsidy removal, noting that reverting to past subsidy regimes would recreate fiscal crises, currency depreciation, and product smuggling.
The Presidency added that the ultimate goal of these measures is to help bring national inflation down to single digits in a sustainable manner.
— SSE News Desk
You Might Also Like
