• Obi questions policy impact, demands comprehensive economic strategy
• Falana seeks domestic production cost pricing
• Motorists cite app restrictions, digital access barriers
• HEDA seeks cash transfers, transport support, lower food costs
• Presidency rejects subsidy return, defends price modulation
• PDP demands pricing transparency, APC defends intervention

Presidential candidate of the Nigeria Democratic Congress (NDC) Peter Obi and human rights lawyer Femi Falana have faulted the Federal Government’s approach to petrol pricing, questioning the effectiveness and sustainability of its 30-day petrol discount as motorists lament difficulties accessing the relief.

While Obi criticised the intervention as inadequate to address the economic hardship facing Nigerians, Falana advocated a domestic production cost pricing model to bring down pump prices.

TheHuman and Environmental Development Agenda (HEDA) and the Lagos State chapter of the Peoples Democratic Party (PDP) also called for transparency and sustainable relief, even as the All Progressives Congress (APC) and the Presidency defended the initiative as a temporary measure to cushion the impact of high fuel prices.

Obi described the discount as a reactive measure that fails to address the economic hardship facing Nigerians.

In a statement posted on his X handle titled, “One Month Discount on Petrol: From Reactive Policies to Flawed Outcomes”, the former Anambra State governor said the intervention prioritised political optics over sound economic planning.

Obi said he had delayed commenting on the announcement to assess its outcome before concluding that the measure was inadequate.

“Now, having assessed the outcomes, the policy is a substitution of political optics for sound policy,” he said.

He traced the current economic hardship to the removal of petrol subsidy on May 29, 2023, arguing that the decision was taken without adequate consultation or a proper assessment of its implications for the economy and ordinary Nigerians.

He also faulted the subsequent floating of the naira and the implementation of tax reforms, accusing the administration of introducing major economic changes without proper sequencing or sufficient consideration of their effects on households and businesses.

According to him, the combined impact of the policies has been rising prices, worsening poverty, shrinking business opportunities and increasing pressure on Nigerian families.

Questioning the objectives of the 30-day petrol discount, Obi asked: “What really does the President Bola Tinubu-led government want to achieve with a one-month discount of less than five per cent on fuel cost?”

He also questioned whether the intervention could reduce poverty, unemployment, insecurity and inequality, or stimulate productivity and exports.

Obi further asked whether the measure was a trial balloon for a possible return to fuel subsidy or a politically motivated intervention ahead of the 2027 general election.

He, however, provided no evidence to support the suggestion that the discount was linked to electoral considerations.

“Too many questions, no answer!” he said.

Falana urges FG to adopt local production cost pricing for petrol
LAWYER and human rights activist, Femi Falana, urged the Federal Government to end petrol imports and adopt a domestic production cost pricing model to reduce pump prices and ease the economic burden on Nigerians.

Falana called on the government to abandon the Import Parity Price method, arguing that it ties domestic petrol prices to international import costs despite Nigeria’s crude oil resources and domestic refining capacity.

His position comes amid public demands for lower petrol prices and reports of a proposed price-modulation mechanism that would set a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol.

He also questioned the effectiveness of the 30-day promotional programme under which NNPCL retail outlets are offering a N66-per-litre discount on petrol.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria has approximately 22,681 registered filling stations, while NNPCL operates about 900 outlets.

Falana questioned how the temporary discount could benefit a substantial proportion of Nigerians when the national oil company’s retail outlets account for only a fraction of the country’s registered filling stations.

He argued that the Import Parity Price method would not deliver a significant reduction in petrol prices because it links domestic pump prices to the cost of importing the product.

Instead, he advocated Production Cost Pricing, which would take into account the costs of crude oil production, refining, transportation and distribution within Nigeria.

According to him, the approach would reflect the actual costs of producing and refining crude oil locally rather than treating petrol as an imported commodity.

The Senior Advocate of Nigeria also cautioned the government against dismissing alternative economic policies, recalling arguments associated with the Structural Adjustment Programme (SAP) that there was no alternative to the policy.

He maintained that other options were available to address Nigeria’s economic challenges and urged the government to consider alternative economic perspectives in determining petrol prices.

“The alternative to the Import Parity Price method should be adopted by the Federal Government in the public interest,” he said.

Falana further argued that there was no economic or political justification for selling imported petrol to Nigerians at international prices.

He urged the government to reject what he described as the World Bank’s demand that Nigeria should continue importing Premium Motor Spirit (PMS), insisting that domestic production and refining costs should guide pricing decisions.

He said the proposed pricing model should form part of efforts to address public concerns over petrol prices and the rising cost of living.

HEDA urges FG to complement petrol discount with social protection measures
THE Human and Environmental Development Agenda (HEDA Resource Centre) urged the Federal Government to complement its 30-day petrol discount with comprehensive measures to ease the economic hardship facing Nigerians.

HEDA Chairman, Olanrewaju Suraju, said the effectiveness of the intervention would depend on transparent implementation, accessibility and tangible benefits for citizens.

He noted that although the government had clarified that the initiative was a temporary margin discount rather than a return to blanket fuel subsidy, it must deliver meaningful reductions in transportation costs and provide relief to households and businesses.

The organisation called for stronger social protection programmes, including timely and transparent cash transfers to vulnerable households. It said the programmes should be supported by credible beneficiary data, clear eligibility criteria and effective accountability mechanisms to prevent diversion of funds and the exclusion of deserving beneficiaries.

HEDA also urged the government to tackle rising food and transportation costs through targeted support for commercial transport operators, improved access to affordable public transport and increased investment in local food production and distribution.

It further called for measures to reduce the cost of transporting agricultural produce to markets.

On the implementation of the petrol discount, Suraju urged the government to publish clear guidelines identifying participating Nigerian National Petroleum Company Limited (NNPCL) filling stations, the applicable discount per litre and eligibility criteria for public transport operators.

He also called for effective mechanisms to monitor compliance and transparent reporting on the proposed petrol price ceiling and its monthly reviews.

HEDA further advocated accelerated investment in sustainable alternatives to petrol, including reliable public transportation, affordable compressed natural gas (CNG) options and renewable energy, supported by adequate infrastructure and appropriate safety standards.

Motorists lament restricted access to petrol discount
MANY motorists have expressed frustration over difficulties accessing the Federal Government’s 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPCL) filling stations, saying the offer is available only to customers using the company’s mobile application.

The motorists said they were unable to benefit from the discount when purchasing petrol directly at the pumps, while some raised concerns about digital access, network challenges and the affordability of the product.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, had announced the temporary discount as a measure to provide relief to Nigerians.

According to the announcement, the intervention was expected to reduce the petrol price to N1,350 per litre, with the discount applicable at NNPCL filling stations nationwide.

However, checks yesterday in Abuja showed that petrol was selling for N1,405 per litre to customers paying directly at the pumps, while those using the company’s mobile application paid N1,339 per litre.

A motorist in Abuja, Babatunde Atoye, said the discount was not automatically available to customers at filling stations, adding that motorists had to use the company’s mobile application to access the offer.

A petrol attendant, who pleaded anonymity, said customers could only make payments through the application to benefit from the discount.

She added that the offer had yet to be extended to motorists purchasing petrol directly at the pumps.

Another motorist, Abdulrahim Malik, questioned the accessibility of the initiative, particularly for people without Android phones or the digital skills required to use the application.

“How do people who do not have access to Android phones benefit from the discount?

“Some people cannot read or write, let alone access Android phones. How can they use the digital application?” he asked.

A consumer, Toyin Daniel, also said motorists purchasing petrol directly at the pumps did not automatically enjoy the discount.

“I wonder how the Federal Government expects some motorists who are not familiar with the digital platform to access the discount,” she said.

Public analyst Jide Ojo said the intervention could have limited impact because NNPCL operates relatively few filling stations compared with other fuel retailers.

He argued that motorists should not have to travel long distances or spend valuable time searching for NNPCL outlets to benefit from the discount.

Ojo also said the price of N1,339 per litre remained unaffordable for many Nigerians, calling for a more substantial reduction in energy costs.

Tinubu’s modulation plan not subsidy restoration, Presidency replies Atiku
HOWEVER, the Presidency defended President Bola Tinubu’s decision to extend a 30-day petrol discount at NNPCL retail outlets, insisting that the measure is a temporary relief initiative rather than a return to the fuel subsidy regime abolished in 2023.

It also faulted former Vice President Atiku Abubakar’s proposed production subsidy for domestic refiners, arguing that Nigeria lacks sufficient unencumbered crude oil to sustain such an arrangement without undermining government revenue and reviving the fiscal challenges associated with the previous subsidy system.

The Presidency’s position was contained in a statement issued by the Special Adviser to the President on Media and Public Communications, Dr Sunday Dare, in response to Atiku’s criticism of the Federal Government’s intervention in the petroleum market.

Atiku had described the 30-day petrol discount as a “panic-driven publicity stunt”, arguing that a temporary reduction would not address the underlying economic pressures driving up transport fares, food prices and the cost of living.

He also advocated production support for domestic refiners as an alternative to the administration’s approach.

But Dare said the criticism failed to adequately account for the complexities of crude oil ownership, production costs, contractual obligations and the challenges of managing domestic fuel prices amid fluctuations in the international energy market.

According to him, the administration’s approach is designed to cushion the immediate impact of global oil price shocks while preserving the market-based petroleum pricing framework introduced following the removal of fuel subsidy.

“The administration’s intervention is a market-smoothing price modulation framework, not a return to unbudgeted federal spending,” Dare said.

He explained that NNPC Retail had initially introduced a discount on October 1 to mark Nigeria’s 66th Independence anniversary, before the Federal Government announced its extension through October 31.

Under the arrangement, NNPC Retail would forgo its retail profit margin and sell petrol at cost, with priority given to commercial transport operators, according to the government.

Dare argued that the initiative should not be equated with the former subsidy regime, under which government intervention involved absorbing the difference between regulated pump prices and the actual cost of supplying petroleum products.

He said the distinction was important because the current initiative was intended to provide temporary relief without reinstating the broad-based subsidy system that placed substantial pressure on public finances.

The Presidency also defended the proposed N1,350-per-litre ceiling on the ex-gantry or landing cost of petrol, describing it as part of a price-modulation mechanism intended to limit sharp price movements.

Dare said the administration remained committed to measures intended to stabilise the economy and strengthen domestic energy supply, insisting that short-term relief should not come at the expense of long-term fiscal sustainability.

He maintained that the government’s objective was to moderate the immediate effects of external price shocks while preserving the structural reforms introduced since May 2023.

Lagos PDP, APC disagree over petrol discount sustainability
SIMILARLY, the Lagos State chapters of the Peoples Democratic Party and the All Progressives Congress disagreed over the Federal Government’s 30-day petrol discount, with the PDP demanding transparency on its cost and sustainability, while the APC accused the opposition of placing political interests above Nigerians’ welfare.

Speaking at the weekend, the Lagos PDP Publicity Secretary, Christopher Odianarewo, described the initiative as a policy gimmick, questioning the value of the discount, its funding and what would happen after the 30-day period.

The party demanded the immediate publication of the exact per-litre value of the discount, the price of Nigerian crude supplied to domestic refineries, the calculations behind the proposed N1,350 ceiling and the government’s plan after the intervention expires.

It also questioned why Nigerian consumers remained exposed to dollar-denominated petroleum pricing and exchange rate fluctuations despite the country’s crude oil production.

“Nigerians do not need temporary headlines, they need sustainable relief, transparent pricing and accountability,” the statement said.

However, the Lagos APC defended the initiative, accusing opposition parties of turning an intervention intended to ease economic hardship into an opportunity for political point-scoring.

The party’s spokesman, Mogaji Seye Oladejo, said the opposition should acknowledge the potential benefits of the measure while offering constructive suggestions to improve its implementation.

Oladejo, in a statement dated October 9, said concerns about the intervention’s sustainability were legitimate but should not invalidate whatever immediate relief it could provide.