The Alliance for Economic Research and Ethics (AERE) has urged the Nigerian National Petroleum Company Limited (NNPC) to publish weekly data on its N66 per litre petrol discount scheme, including volumes sold, participating outlets, average discounts and the impact on its profit margins.
The organisation also warned that the federal government must ensure that temporary relief measures do not evolve into another petrol subsidy regime, arguing that transparency, clear expiry dates and accountability should guide interventions aimed at cushioning the impact of rising fuel prices.
In an analysis titled: “The N66 Question: Relief Without Relapse: How to Cut Petrol Prices Without Rebuilding the Subsidy Monster,” AERE said NNPC should publish a regular performance scorecard to enable Nigerians to assess the reach and cost of the initiative.
“Second, publish the experiment. NNPC Retail should release weekly data on participating outlets, litres sold under the scheme, the average discount, and its effect on volumes and margins. The public does not need a press release every week. It needs a scorecard,” the group maintained.
Although the NNPC introduced the N66 discount on October 1, 2026, as an Independence anniversary promotion, the Ministry of Finance last week incorporated the measure into a 10-point government response to rising petrol prices, with priority promised for public transport operators. NNPC subsequently announced that the discount would continue nationwide until October 31.
The organisation cautioned that the absence of a direct budgetary charge did not mean the initiative was without public financial implications.
“NNPC is state-owned. If a reduced margin becomes permanent, lower commercial returns can still affect what the company contributes to the public purse,” it stated, stressing that the discount should remain a time-bound customer-relief experiment rather than a permanent entitlement.
AERE noted that the discount amounted to about 4.7 per cent of the average petrol price of N1,400 per litre cited by the Finance Ministry, compared with approximately N830 before the latest international oil-market shock.
It observed that the discount’s reach was limited because it applied through participating NNPC Retail outlets and operated through the NNPC Fuel App. Checks at Abuja outlets on October 9, it said, found that customers paying directly at the pumps did not receive the reduction.
While acknowledging that the initiative could offer some relief to motorists and potentially reduce transport costs where operators passed on the savings, AERE said it was not an inflation policy and did not establish a uniform national pump price.
The organisation also warned against a return to blanket petrol subsidies, citing the Finance Ministry’s estimate that restoring petrol prices to pre-reform levels could cost more than N20 trillion annually, even before accounting for inflated consumption and smuggling.
“The alternative is more perilous,” AERE stated, arguing that the potential fiscal cost of a blanket subsidy made it necessary to distinguish between targeted relief and a broad price-support system.
Beyond the N66 discount, the organisation examined other elements of the government’s 10-point response, including proposed forward crude sales to domestic refineries, expanded cash transfers and subsidised credit, among others.
It identified the proposed petrol price-modulation arrangement as a particularly important measure requiring greater transparency.
Under the proposal, the government is negotiating a N1,350 per litre ceiling on petrol ex-gantry or landing costs. Refiners and importers would absorb costs above the threshold and recover them later when crude oil prices or the exchange rate became more favourable.
However, AERE stressed that the arrangement remained under negotiation and should not be presented as an established national petrol price or a proven solution to price volatility.
It warned that deferred cost recovery could conceal financial obligations if the terms, beneficiaries and recovery mechanism were not disclosed.
To prevent the initiative from becoming a permanent financial burden, AERE urged the government and NNPC to honour the October 31 expiry date and clearly explain the circumstances, expected cost and duration of any extension.
It also advocated a shift towards targeted assistance, including properly verified cash transfers, transport vouchers and support for public transport operators, arguing that these measures could direct relief to households most exposed to rising transport fares and food prices.
According to AERE, assistance targeted at vulnerable households could be more effective than broad price concessions available to every motorist.
The organisation further called for stronger enforcement against illegal levies and avoidable logistics charges, alongside faster CNG conversion and more dependable domestic refining capacity.
It argued that reducing unnecessary transportation and distribution costs would provide more sustainable relief than repeatedly discounting petrol, while alternative fuels and domestic refining could help reduce Nigeria’s exposure to international oil-market shocks.
Emmanuel Addeh
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