Perhaps because of our peculiar circumstance or experience with fuel subsidy, there appears to be a tendency by the governments in the past and today to run away from that word as though the word subsidy by its nature and application is evil, demonic or something peculiar to Nigeria.
All nations of the world enjoy one form of subsidy or the other including our country Nigeria.
If subsidy is when government makes something cheaper for the people than its real cost, then what is untoward about it if the government, knowing that the people are suffering, decides to ameliorate the hardship of the people through fuel subsidy? Is the problem really subsidy or the corruption and fraud around it?
If the problem of fuel subsidy is corruption, then why punish the people rather than kill the corruption and allow the people enjoy some benefit of their God-given resources?
When on May 29, 2023, President Bola Tinubu in his speech to the nation declared, ‘Subsidy is gone’, I will not be hard put to say what he meant was the corruption around subsidy in the sector is gone and not an intention to punish the majority of the people because of the greed and avarice of a few.
Imagine if the government were to take away subsidy in public education, agriculture, electricity and end the occasional transfer of stipend to the vulnerable, or have we not have reported cases of fraud around them? There should not be any kind of ambiguity about this. All sectors of government are enmeshed in corruption.
Kill the corruption not the suffering masses.
In Saudi Arabia and the UAE who are oil producers like us, fuel, electricity, water are heavily subsidised.
When Atiku Abubakar recently said he would reintroduce subsidy if elected in 2027, that singular remark jolted the polity in a manner that simply reinforced the fact that fuel subsidy is at the very heart of the adversities facing the nation.
Suddenly, every contestant, including Peter Obi, also expressed similar position saying he would restore it after dealing with corruption around it.
Last Thursday, the Federal Government announced a fresh package of measures to cushion the impact of high petrol prices on Nigerians, including a 30-day margin discount at NNPC Limited stations. A proposed ₦1,350 per litre ceiling on petrol ex-gantry or landing costs and increased cash transfers to vulnerable households is to be introduced.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who disclosed this, said the measures were aimed at easing the burden on households and businesses without returning to blanket fuel subsidy.
The minister also disclosed that government was negotiating a ceiling of ₦1,350 per litre on the ex-gantry or landing cost of petrol to reduce the impact of volatility in global crude prices and the exchange rate on pump prices.
Under the proposed arrangement, he explained, refiners and importers would carry any shortfall when costs rise above the ceiling and recover it later when crude prices or the exchange rate becomes favourable.
Oyedele stressed that the arrangement was neither a subsidy nor price control, but a mechanism to smoothen pump-price fluctuations and provide greater certainty for consumers and businesses.
He said the ceiling would be reviewed monthly, with the figures published for transparency.
On Friday, the NNPC Limited reaffirmed its commitment to supporting the Federal Government’s efforts to provide relief for Nigerians amid elevated global crude oil prices arising from the Middle East conflict and the resulting impact on domestic petrol prices.
In a statement Andy Odeh, Chief Corporate Communications Officer, said: “We recognise that higher petrol prices affect everyday life, from the cost of commuting to the expenses of running a business. We understand the strain on families and livelihoods, and this discount is intended to provide direct relief to customers during this difficult period.
Before the announcement, NNPC Limited had introduced a sales discount on October 1, 2026, to commemorate Nigeria’s 66th Independence Anniversary. This will now continue until 31 October, 2026, across NNPC Retail stations nationwide. This discount is a customer relief initiative and does not represent the reintroduction of petroleum subsidy.
The government of President Tinubu should be commended for at least shifting grounds after close to four years of refusing to yield on this.
Truth is, all other measures including those just introduced have not and will not achieve much.
The reason being that they are not enduring nor comprehensive so they will not cover any significant ground.
The nation’s economy is essentially road- driven, so providing few CNG buses and targeting discounted rate for commercial buses and by NNPC alone cannot be comprehensive and widespread enough to make any significant impact. We have experimented with all these since 2023 and we have not achieved the desired result.
Temporary knee-jerk responses cannot impact or stimulate growth that is desperately needed by the nation, neither can they ameliorate or assuage the current excruciating pangs of hunger across the land.
It does not amount to any loss of face or a weakness on the part of the government to reconsider or revisit the fuel subsidy removal.
For many years the NNPC remained a cesspit of corruption. For all the years they wore the twin cap of regulator and operator, the opacity around its operations made it impossible for it to function.
As we speak it’s impossible to tell the actual consumption figures of the country, neither can we tell the actual daily production of the country. In this age of technology it’s very possible to reduce the corruption around the industry. Unfortunately, because of the lack of political will to do this, Nigerians are being made to suffer the same fate of nations without crude oil.
Whether it be called discount or by whatever name or arrangement, what Nigerians need now is a reprieve and an enduring administrative approach that will spur rapid development of the nation.
That it is coming now, about 90 days to the general elections has also raised questions around the motive by the government. Is it just another political gimmick or a genuine desire to hearken to the cry of the long-suffering masses for reprieve?
If others can do it, what then is wrong with us?
