Presidency Confirms No Return to Petrol Subsidies Amid Criticism

The Presidency has firmly stated that there will be no return to petrol subsidies, emphasizing that the current 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) retail stations is merely a temporary relief measure. Bayo Onanuga, Special Adviser on Information and Strategy, responded to criticisms from the African Democratic Congress (ADC) and the Nigeria Democratic Congress (NDC), urging them to understand the distinction between a retailer's margin discount and a government-funded subsidy.

Onanuga explained that a margin discount occurs when a retailer reduces its profit margin, with the cost borne by the retailer, unlike a subsidy where the government pays part of the consumer's cost using public funds. He reiterated that the subsidy system was abolished by the Tinubu administration in May 2023 and will not be reinstated.

The ADC and NDC criticized the government's approach, with ADC officials describing the proposed N1,350-per-litre arrangement as an inadequate and insulting response to economic challenges.