The Federal Government has said the petrol discount at NNPC Retail Limited stations is funded entirely by the retailer’s margins, not the federal budget or the Federation Account.
The clarification was contained in a statement issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Friday, October 9, 2026.
The clarification comes a day after the Federal Government announced a 30-day petrol discount at NNPC stations as part of measures to ease the burden of elevated fuel prices on Nigerians.
Oyedele said NNPC Retail is absorbing the cost of the discount by reducing its retail margin, without receiving government funds to lower pump prices.
The minister explained that fuel retailers typically add a margin to their purchase costs but can temporarily reduce it to pass savings to consumers.
The government maintained that the 30-day petrol discount is a commercial decision by NNPC Retail, funded solely through its retail margins rather than the federal budget or the Federation Account.
Oyedele said NNPC Retail, a wholly owned subsidiary of NNPC Limited, was established to support the nationwide availability and affordability of petroleum products.
He added that retail margins account for less than 5% of pump prices, arguing that the discount would not significantly widen Nigeria’s petrol price gap with neighbouring countries or create a major new incentive for smuggling.
The 30-day discount forms part of broader measures to ease fuel and transport costs, with priority for public transporters.
He also said N15.8 trillion was released to the Federation Account between June 2023 and December 2025 following subsidy removal, including N10.4 trillion for state and local governments.
Former Vice President Atiku Abubakar criticised the discount, arguing that it would not provide lasting relief from high fuel, transport and food costs.
In a statement issued on Thursday by Phrank Shaibu, Director of Strategic Communication for the ADC Presidential Campaign Council, Atiku questioned what would happen when the intervention expires.
Atiku also questioned why the discount was limited to NNPC stations and whether transport operators would pass their savings to passengers through lower fares.
He argued that the government should consider longer-term production support tied to locally refined petrol, with safeguards to ensure consumers benefit. The Federal Government, however, has warned that such interventions could expose public finances to crude oil price and foreign exchange volatility.
