An explanation of why the temporary petrol price cut by the Nigerian National Petroleum Company Limited (NNPCL) does not constitute a return to the fuel subsidy regime that the Federal Government abolished has been provided by the Center for the Promotion of Private Enterprise (CPPE).
CPPE argued that the program was not an end to the policy of removing petroleum subsidies but rather a stopgap measure to protect Nigerians from the impact of sudden spikes in oil prices caused by disruptions in the international energy market.
While addressing fears that the fuel price relief program could undercut the government’s economic reforms, Dr. Muda Yusuf, Chief Executive Officer of CPPE, made this statement in a policy brief issued on Tuesday, October 13, 2026.
Yusuf claims that countries involved in oil production and importation have been hit hard by the current spike in petroleum prices, which have been caused by geopolitical tensions.
Instead of being a result of Nigeria’s subsidy reduction policy, he said, the situation was caused by an outside economic shock.
A short action in response to an extraordinary economic shock and a fundamental policy reversal are distinct, according to Yusuf, and such an interpretation is inaccurate.
In contrast to the present program, the old subsidy regime placed a heavy financial strain on the government by subsidising the country’s gasoline consumption, which ranged from 50 million to 90 million litres per day at various points in time, according to CPPE.
The economic group brought attention to the fact that the previous subsidy regime strained public budgets, diverted funds from development initiatives, and exacerbated macroeconomic instability.
On the other hand, CPPE calculated that the country’s daily petrol consumption was 50 million litres, while the present intervention covered almost 70 million litres of NNPCL’s gasoline supply.
The economic distortions and substantial budgetary risks that would result from reinstituting a broad-based consumption subsidy would be brought back, according to Yusuf.
He further clarified that the present effort to reduce fuel prices is not a change in policy on the elimination of petroleum subsidies, but rather a limited reaction to a significant global energy shock.