The Federal Government has announced a package of measures aimed at shielding Nigerian households and businesses from the impact of global oil market volatility, with interventions targeting fuel prices, transport fares, energy supply and the cost of doing business….
The Federal Government has announced a package of measures aimed at shielding Nigerian households and businesses from the impact of global oil market volatility, with interventions targeting fuel prices, transport fares, energy supply and the cost of doing business.
The measures include a proposed N1,350-per-litre ceiling on petrol landing or ex-gantry costs, increased cash transfers to vulnerable households, subsidised credit for small businesses and consumers, faster deployment of compressed natural gas (CNG) and the establishment of a National Strategic Fuel Reserve.
Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the proposed petrol ceiling would be reviewed monthly to reflect changing market conditions.
Under the arrangement, where the cost of petrol rises above the ceiling, refiners and importers would initially absorb the difference and recover it when crude oil prices or exchange rates become more favourable.
Oyedele said the policy was designed to smooth out price fluctuations rather than control the market.
“This is neither a subsidy nor a price control; it is designed to smooth prices over time rather than suppressing them,” he said.
The government is also expanding its CNG programme in partnership with state governments, with officials saying the alternative fuel is between 60 and 70 per cent cheaper than petrol.
The Federal Government expects transport operators to pass the savings on to commuters through lower fares.
Another major intervention is the proposed National Strategic Fuel Reserve, which the government says will help protect consumers and businesses from future supply disruptions.
Under the plan, refined petroleum products would be released into the market under clear and published rules when global disruptions or artificial scarcity threaten supply and price stability.
The Presidency said the reserve would not be used to fix petrol prices or restore subsidy but to strengthen energy security and reduce volatility.
Government is also targeting the wider cost of transportation by working with states and security agencies to curb road taxes and levies that add to fares and logistics costs.
Traffic management agencies are expected to improve the flow of vehicles in major urban centres to reduce fuel consumption, while NIPOST’s newly launched address codes are expected to make logistics more efficient.
The government further announced plans to consider an excess-profit tax for operators found to be taking undue advantage of consumers along the energy value chain.
Proceeds from any such tax would be channelled towards transport support or vouchers for vulnerable urban minimum-wage earners.
The Federal Government also plans to work with the National Assembly on enhanced tax relief for low-income earners under the 2027 Finance Bill.
It said regulatory costs that contribute to higher prices would also be reviewed, while funding for cash transfers to vulnerable households and subsidised credit would be increased.
The Presidency acknowledged the pressure Nigerians are facing but ruled out a return to the blanket petrol subsidy.
“Government is not out to reverse a necessary reform designed to set our country on the path towards sustained prosperity,” Special Adviser to the President on Information and Strategy, Bayo Onanuga, said.
“It is to ensure its gains reach more Nigerians, faster and in more tangible ways.”
The Federal Government also said it was working on a broader fiscal package aimed at bringing inflation down to single digits sustainably in the near term.