Tinubu's Administration to Cut NNPC Petrol Profits

President Bola Ahmed Tinubu's administration has stated that NNPC Retail will relinquish its profit margin on petrol sales to help alleviate the financial burdens faced by Nigerians. The government has proposed measures to stabilize petrol prices, including setting a maximum of N1,350 per litre for landing or ex-gantry costs.

However, the administration insists that these measures do not constitute subsidies. The article argues that while the government acknowledges the need for relief, it is hesitant to label its actions as such.

It emphasizes that the Nigerian National Petroleum Company Limited is a public asset owned by Nigerians through the Federation, and the profit NNPC gives up should benefit the people. The article draws a parallel to the make-whole principle in tort law, suggesting that the government's actions should be viewed as restoring lost buying power rather than acts of kindness.

The relationship between Nigerians and their publicly owned oil company is framed as one where the people are the primary beneficiaries of national resources.