The Federal Government has announced a 10-point intervention package, including a proposed N1,350-per-litre ceiling on petrol landing costs and a 30-day discount on fuel sold at Nigerian National Petroleum Company Limited (NNPCL) stations, as part of measures to ease the rising cost of living.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measures on Thursday, saying the government was responding to mounting pressure from rising petrol prices, transportation costs and inflation on households and businesses.
Key Highlights
- FG unveils a 10-point plan to ease rising fuel, transport and living costs.
- Petrol at NNPCL retail stations will be discounted for an initial 30 days, with priority for public transport operators.
- Government is negotiating a N1,350-per-litre ceiling on petrol landing costs, to be reviewed monthly.
- Forward sales of crude to domestic refineries, a National Strategic Fuel Reserve and an excess-profit tax are proposed.
- Oyedele says none of the measures restores a blanket petrol subsidy.
- Tax and duty waivers on petrol exceeded N3.3 trillion as of September 30, 2026.
Oyedele: Measures Are Not a Return to Subsidy
Oyedele, however, insisted that the measures should not be interpreted as a return to the controversial petrol subsidy regime, which he said had imposed a huge fiscal burden on the country and distorted the market.
“To be perfectly clear, none of these measures restore a blanket subsidy. To do so would amount to creating longer-term harm for a short-term cure,” the minister said.
30-Day Discount at NNPCL Stations
Under the first intervention, petrol sold through NNPCL retail stations will be discounted for an initial 30 days, with public transport operators expected to receive priority.
Oyedele said the measure was designed to provide immediate relief to transport operators and commuters affected by high fuel and transportation costs.
“It is not a subsidy. Government is just saying we sell to you at a discount,” he said.
Forward Crude Sales to Domestic Refineries
The government also plans to introduce forward sales of crude oil to domestic refineries as additional crude production and previously committed volumes become available.
According to Oyedele, the arrangement would provide domestic refiners with greater certainty over crude supply and shield them from sudden movements in international crude prices.
He said the government could agree to sell crude to refiners at predetermined prices for specified periods, allowing refiners to plan production while helping to moderate pump-price volatility.
“If you can sell your crude forward, we sell to the refiners for the next six months. We are selling you crude at $80 per barrel, for example. That preserves your budget, provides certainty to the refiners and price stability to the consumer,” he said.
N1,350 Petrol Landing Cost Ceiling
The third measure is a proposed price modulation mechanism under which the government is negotiating a N1,350-per-litre ceiling on the landing cost of petrol.
Oyedele said the mechanism was intended to prevent domestic petrol prices from responding immediately to every movement in international crude prices and the exchange rate.
Under the arrangement, where the actual landing cost rises above the agreed ceiling, refiners and importers would absorb the difference and recover it when market conditions improve.
He stressed that the arrangement was neither a subsidy nor conventional price control, but a mechanism for smoothing price movements.
“The reasoning is simple. N1,400 a litre today and N1,400 a litre tomorrow is better than N1,100 a litre today and N1,300 a litre tomorrow,” Oyedele said.
He added that the proposed ceiling would be reviewed monthly, with the relevant data and calculations published to ensure transparency.
CNG Vehicles and Cheaper Energy Alternatives
The fourth intervention centres on accelerating the deployment of Compressed Natural Gas (CNG) vehicles and infrastructure as cheaper alternatives to petrol-powered transportation.
Oyedele said more than 120,000 vehicles were already operating on CNG, supported by more than 400 conversion centres, 96 refuelling stations and 18 unified CNG stations.
He said the government had also deployed hundreds of CNG buses, with commuters in areas where they operate benefiting from fare reductions of between 30 and 50 per cent.
The minister said the Federal Government had removed taxes on electric vehicles and solar equipment while reducing import duties on vehicles to encourage the adoption of cheaper and cleaner energy alternatives.
He added that Nigeria Customs Service data showed that imports of CNG-powered vehicles, tricycles, electric vehicles and renewable-energy equipment had more than doubled since May 2023.
According to him, the government had granted more than N100 billion in tax and duty waivers within the first nine months of the current intervention period.
Levies, Targeted Transfers and CNG Rollout
The fifth measure targets levies and other charges that increase the cost of transporting people and goods.
Oyedele said the Federal Government was working with state governments under the new tax laws to eliminate unnecessary levies that ultimately get passed on to consumers.
The government will also strengthen targeted transfers to vulnerable households and provide subsidised credit to small businesses and consumers, he said.
The sixth intervention involves an accelerated nationwide rollout of CNG infrastructure.
Oyedele said the Federal Government would work with state governments to expand CNG deployment, while urging transport operators to pass the savings from cheaper fuel to passengers through reduced fares.
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Excess-Profit Tax and Regulatory Cost Cuts
The seventh measure is a proposed excess-profit tax on businesses considered to be making undue profits from prevailing conditions in the energy value chain.
Oyedele said revenue from the proposed measure would be channelled into interventions aimed at cushioning food-price pressures, including transportation support and vouchers for vulnerable urban households and wage earners.
“We will collect it from them and give to the vulnerable people,” he said.
He added that the Federal Government would work with the National Assembly on enhanced tax relief for low-income earners under the proposed 2027 Finance Bill.
The eighth intervention targets regulatory costs and red tape that add to the cost of doing business and ultimately push up consumer prices.
Oyedele said the government had commenced discussions with regulatory agencies to identify unnecessary charges and processes that could be eliminated.
National Strategic Fuel Reserve
The ninth measure is the establishment of a National Strategic Fuel Reserve to protect consumers and businesses from supply disruptions, artificial scarcity and excessive price volatility.
According to the minister, refined petroleum products would be released into the market under clear and publicly published rules whenever global disruptions, hoarding or other factors threaten supply and price stability.
“This is not a subsidy, and it does not fix prices. Rather, it secures supplies and reduces price volatility,” he said.
The reserve, he added, would help prevent artificial scarcity, deter market manipulation and strengthen Nigeria’s energy security.
Traffic and Logistics Management
The 10th intervention focuses on improving traffic and logistics management, particularly in major urban centres.
Oyedele said traffic management agencies would be expected to improve traffic flow to reduce fuel consumption and transportation costs.
He also cited the recently launched digital addressing system as part of efforts to make the movement of goods and services more efficient.
N3.3trn Petrol Tax Waiver, Broader Relief Measures
The minister said the latest measures were being introduced alongside broader government interventions aimed at reducing energy and food costs.
He said the government continued to subsidise electricity for vulnerable consumers while supporting gas and fertiliser supply for producers.
Oyedele also disclosed that the Federal Government had granted a full waiver of taxes and duties on petrol worth more than N3.3 trillion as of September 30, 2026.
He acknowledged that existing interventions had not completely eliminated the economic pressure facing Nigerians.
“We recognise that these measures, important as they are, do not fully relieve the pressure households feel today,” he said.
Oyedele maintained that returning to a blanket petrol subsidy would not provide a sustainable solution, arguing that the previous regime was associated with fuel scarcity, smuggling, currency pressures and significant fiscal costs.
“Because fuel is real, I will not dismiss it. The cost of reform came at a price, and many households are still bearing it,” he said.
The minister said the government was also working on a broader package of fiscal measures aimed at bringing inflation down to single digits sustainably, with further details expected to be released in the coming months.
He said the Federal Government would continue to monitor developments in the energy market and introduce further interventions where necessary.
According to him, the overall objective is to combine immediate relief with structural measures capable of reducing Nigeria’s exposure to energy-price shocks, lowering transportation costs and strengthening domestic energy security.
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