Private enterprise group urges targeted social protection, affordable mass transit and agricultural support to cushion Nigerians against global energy price shocks…..
The Centre for the Promotion of Private Enterprise (CPPE) has defended the Federal Government’s fuel price relief initiative through the Nigerian National Petroleum Company Limited (NNPC), insisting that the measure does not amount to a reversal of the petroleum subsidy removal policy.
The organisation said the intervention was a temporary response to an extraordinary global energy shock, warning against interpretations that equate the initiative with the former nationwide petrol subsidy regime.
In a statement issued on October 13, 2026, CPPE Chief Executive Officer, Dr Muda Yusuf, attributed the recent surge in petroleum prices primarily to geopolitical tensions that have pushed global crude oil prices above $100 per barrel.
Yusuf noted that the development was an external shock affecting both oil-producing and oil-importing countries, rather than a consequence of Nigeria’s subsidy removal policy.
He argued that governments could introduce exceptional measures to protect households and businesses during periods of severe economic pressure without abandoning their broader economic management frameworks.
According to him, economic policies should remain responsive to citizens’ welfare rather than become rigid doctrines that prevent governments from addressing extraordinary social and economic difficulties.
Why the Current Intervention Is Different
CPPE said the scale and structure of the latest fuel price relief initiative distinguish it from the previous subsidy arrangement, which imposed a substantial financial burden on the government.
Under the former system, the government effectively subsidised nationwide petrol consumption estimated at between 50 million and 90 million litres daily at various times.
The organisation said the arrangement placed considerable pressure on public finances, crowded out development expenditure and contributed to macroeconomic instability.
By comparison, it said reported figures indicate that the current intervention covers approximately 70 million litres of NNPC fuel supply monthly, against estimated national petrol consumption of 50 million litres daily.
CPPE also stressed that the initiative had not restored a regulated national petrol price, imposed a general subsidy obligation on private operators or dismantled the market-based framework for petroleum pricing.
It maintained that these differences were critical to understanding the intervention and assessing its implications for the country’s economic reforms.
NNPC’s Commercial Role and Public Interest
The organisation said NNPC’s status as a government-owned commercial enterprise did not prevent it from participating in temporary interventions designed to address exceptional public-interest concerns.
However, Yusuf emphasised that such measures must operate within a sound governance framework and remain transparent, proportionate, time-bound and financially sustainable.
He said government ownership provided an opportunity to deploy public assets strategically during extraordinary circumstances but should not become a justification for abandoning commercial discipline indefinitely.
The objective, he added, should be to balance NNPC’s commercial sustainability with legitimate public-interest obligations.
CPPE Warns Against Undermining Reform Credibility
CPPE described the removal of the former petroleum subsidy as a necessary structural reform, warning that a return to broad-based petrol consumption subsidies would expose public finances to renewed risks.
Yusuf said such an arrangement would be difficult to sustain amid Nigeria’s infrastructure deficits, debt-servicing obligations and competing development needs.
He, however, cautioned that a limited and temporary relief measure should not automatically be viewed as a setback for policy credibility.
According to him, investors are more concerned about policy predictability, market access, commercial viability, fiscal sustainability and the protection of legitimate investments.
He maintained that these fundamentals could remain intact if the government avoided imposing commercially unviable prices, discriminating against private operators or introducing restrictions that distort competition.
CPPE noted that private businesses remained the dominant participants in Nigeria’s downstream petroleum market, adding that the current initiative need not weaken investor confidence if properly implemented.
Mass Transit, Agriculture Top List of Recommended Measures
Beyond the fuel price relief initiative, CPPE called on the Federal Government to introduce broader measures to cushion households and businesses against the effects of rising energy costs.
The organisation said the limited coverage of the current intervention meant its overall impact on household welfare would also be limited.
It urged federal and state governments to expand affordable mass transit, including high-capacity buses powered by compressed natural gas (CNG), electricity and other economically viable energy sources.
According to CPPE, subsidised public transportation could provide wider benefits than limited petrol discounts by reducing commuting expenses for low-income workers, students and small business operators.
It added that affordable transport would improve labour mobility, lower operating costs for small enterprises and support economic activity.
The group also called for targeted support for agricultural production, noting that higher energy prices increase the cost of land preparation, irrigation, mechanisation, transportation, storage and food distribution.
It recommended improved access to fertilisers, agrochemicals, agricultural machinery and other productivity-enhancing inputs, arguing that reducing food production and distribution costs should take priority over reliance on general consumption subsidies.
States Urged to Support Vulnerable Households
CPPE further urged state and local governments to play a greater role in cushioning the impact of the energy price shock.
It said the responsibility for protecting citizens should not rest solely on the Federal Government, given the states’ roles in transportation, education, healthcare, agricultural development and local economic welfare.
According to the organisation, state governments could consider discounted fuel outlets, subsidised public transportation and targeted assistance for vulnerable households.
It stressed that any such programme should have clearly defined eligibility criteria, a fixed duration, transparent funding arrangements and safeguards against diversion.
The organisation also urged the government to preserve the integrity of petroleum market reforms by maintaining market-based pricing, fair competition, transparent regulation and trade policies that encourage investment in domestic refining.
‘Nigeria Does Not Need a Return to Petrol Subsidy’
CPPE maintained that the current fuel price relief initiative should be regarded as a limited response to an exceptional global energy shock rather than a reversal of the petroleum subsidy removal policy.
Yusuf said the intervention differed from the former subsidy regime in its scale, design and potential fiscal implications, stressing that its temporary nature and limited market coverage were important distinctions.
He said the government’s priority should be to protect vulnerable citizens, safeguard public finances and sustain ongoing economic reforms.
“Nigeria does not need a return to the fiscally destructive subsidy regime. What it needs is a credible framework for temporary, targeted and transparent social protection during exceptional economic shocks,” he said.
Yusuf added that the global energy crisis required pragmatic policy responses rather than ideological rigidity, arguing that economic reforms must be sustainable while remaining responsive to citizens’ welfare.
