The Federal Government has announced a 30-day petrol discount programme for public transport operators across Nigeria, with the Nigerian National Petroleum Company Limited (NNPCL) expected to give the group priority under the initiative.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the measure during a press briefing in Abuja on Thursday, explaining that the programme was intended to make petrol available to beneficiaries at cost.
Oyedele stressed that the initiative should not be interpreted as a return to the fuel subsidy regime, which the government removed in May 2023.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance with priority for public transporters nationwide. So, it’s not a subsidy; the government is just saying we sell to you at cost,” the minister said.
The programme is expected to provide temporary relief to public transport operators facing the impact of high petrol prices, which have increased the cost of running vehicles and contributed to transport expenses for commuters.
However, the minister’s announcement did not specify the exact discount per litre, the eligibility requirements for participating transport operators or the locations and stations where the programme would be available.
The government also did not announce whether the 30-day period would be extended beyond the initial timeframe.
The announcement comes amid variations in petrol pump prices across Nigeria. Figures cited in the report put the price at N1,355 per litre in Lagos and Rivers states, while motorists in Abuja were reported to be paying N1,370 per litre at NNPC stations.
The proposed intervention is expected to focus on public transport operators rather than provide a general petrol price reduction for all motorists.
If implemented as described, the programme could help participating operators manage fuel expenses during the 30-day period. Any effect on fares paid by commuters, however, will depend on how the discount is applied and whether transport operators pass the savings on to passengers.
Oyedele reiterated that the government considers the initiative a cost-based pricing arrangement rather than a reinstatement of a general fuel subsidy.
Further details on the programme’s implementation, including how transport operators can access the discounted petrol, are still needed to establish its full scope and likely impact.
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