…says 30-day intervention not a return to subsidy
The Tinubu Support Group (TSG) has criticised former Vice President Atiku Abubakar over his comments on the Federal Government’s 30-day petrol discount initiative, insisting that President Bola Tinubu is exploring measures to ease the hardship caused by rising fuel prices.
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…says 30-day intervention not a return to subsidy
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The group said the initiative, under which the Nigerian National Petroleum Company Limited (NNPCL) intends to temporarily forgo its petrol retail profit margin, was designed to cushion the impact of rising fuel costs on transportation and household expenses, rather than restore the petrol subsidy abolished in May 2023.
TSG Director-General, Dr Umar Tanko Yakasai, stated this in a statement on Friday, arguing that the proposed intervention differed from the former government-funded subsidy regime in its structure and implications for public finances.
According to him, the initiative demonstrates the administration’s willingness to provide immediate relief while sustaining its broader economic reforms.
“President Tinubu understands the pressure that rising petrol prices place on Nigerian households, workers, traders and businesses. The 30-day intervention is one of the measures being explored to cushion the impact of the global oil-price shock on Nigerians,” Yakasai said.
He added that describing the temporary commercial discount as a return to the former subsidy regime was misleading, noting that the two arrangements had different implications for government spending.
The group also cited planned measures to stabilise petrol landing costs, expand compressed natural gas (CNG) transportation and provide additional support for vulnerable households as evidence of the administration’s efforts to address the cost-of-living crisis.
Yakasai said placing a ceiling on petrol landing costs, alongside measures to reduce transportation and logistics expenses, could help moderate the impact of fuel-price fluctuations on the cost of goods and services.
He, however, stressed the need to ensure that the benefits of the intervention reached ordinary Nigerians.
“The ultimate objective should be to ensure that relief reaches ordinary Nigerians. If transport operators benefit from lower fuel costs, commuters should also see corresponding reductions in fares. Government must ensure that these measures produce tangible results,” he said.
Reacting to Atiku’s proposal for a production-based subsidy through preferential crude-oil pricing for domestic refineries, the group said alternative proposals should be assessed based on their financial implications, transparency and capacity to deliver affordable petrol to consumers.
The TSG urged the former vice president to “stop playing politics with the welfare of Nigerians,” arguing that supplying crude oil to domestic refiners below market value could result in substantial revenue losses, even if the cost did not appear as a direct expenditure in the national budget.
It also argued that lower crude-oil prices would not automatically translate into cheaper petrol without mechanisms to ensure that the benefits were passed on to consumers.
“Any proposal intended to reduce petrol prices deserves serious consideration, but it must also answer fundamental questions about who bears the cost, how the arrangement will be financed and how Nigerians will benefit,” the group said.
“The important issue is not merely whether a proposal sounds attractive, but whether it is transparent, sustainable and capable of delivering relief without creating new economic problems.”
The group further maintained that acknowledging the hardship associated with economic reforms should not be interpreted as an admission that the reforms were unnecessary.
It said the government’s responsibility was to ensure that the benefits of economic adjustments translated into improved living conditions through interventions addressing transportation costs, food prices, employment and household incomes.
According to the TSG, the administration should be assessed not only on its long-term economic objectives but also on its response to the immediate difficulties confronting Nigerians.
“Economic reforms must ultimately improve the lives of the people. The government recognises that Nigerians are facing difficult conditions, and that is why measures to cushion the effects of rising fuel prices and support vulnerable households are important,” it said.
The group added that Tinubu remained focused on finding practical ways to address the challenges without returning the country to a system it described as potentially unsustainable for public finances.
It urged the NNPCL and relevant government agencies to ensure transparency in implementing the 30-day discount by providing clear information on participating outlets, applicable prices and mechanisms for monitoring its impact.
The TSG also called for effective monitoring to ensure that any savings enjoyed by commercial transport operators were reflected in the fares paid by commuters.
It maintained that Nigerians deserved both immediate relief and sustainable economic policies, urging public debate to focus on the effectiveness of proposed solutions and their impact on citizens’ welfare.
