The Federal Government has defended the Nigerian National Petroleum Company Limited’s decision to sacrifice part of its profit margin to cushion the impact of rising petrol prices, assuring Nigerians that President Bola Tinubu will not leave households to bear the burden of increasing fuel costs alone.
The Minister of Information and National Orientation, Mohammed Idris, said the intervention was designed to provide temporary relief amid rising international petroleum prices, stressing that it did not represent a reversal of the fuel subsidy removal policy introduced by the Tinubu administration.
Idris gave the explanation on Monday during a media briefing, where he acknowledged the financial pressure facing Nigerians and said the government was exploring measures to ease the effects of developments in the global oil market.
According to the minister, the President was concerned about the sudden increase in fuel prices and would not remain indifferent to the difficulties confronting citizens.
“President Bola Tinubu is a listening president. He cannot just sit and watch his countrymen face pressure they did not see coming and then do nothing about it. In any case, the NNPC is a limited liability company,” Idris said.
He explained that the national oil company had considered surrendering part of its earnings to reduce the immediate burden on consumers, describing the move as an intervention aimed at protecting energy security and helping Nigerians adjust to prevailing economic conditions.
“You look at issues, and then you come up with a mechanism to cushion the effect for our citizens. And so what the NNPC has done is they have looked at it and said, okay, we’re making this much profit, why can’t we forego some of the profit that we are making so that Nigerians will have some form of cushion?” he stated.
The minister argued that the intervention was a response to changing international circumstances rather than an attempt to restore the petrol subsidy regime.
He noted that the global conditions currently affecting petroleum prices were different from those that existed when the government announced the removal of the subsidy in May 2023.
“What we’re trying to do is to approach a matter that has arisen as a result of something that was not seen. When subsidy was removed, of course, the Iran-U.S. war didn’t exist. So at every time, government is a continuously evolving system,” Idris said.
He maintained that Nigeria was not the only country experiencing higher fuel prices, adding that the international nature of the petroleum market meant that developments abroad could affect domestic prices.
“Fuel is an international commodity, if you will. Yes, of course, we dig it from our grounds here, but its marketing and sales follow international dimensions. And if you follow what is happening in the Middle East now, you’ll have noticed that fuel prices haven’t gone up only in Nigeria,” he said.
Idris added that governments worldwide were adopting different measures to respond to rising energy costs, insisting that the NNPC’s decision to adjust its profit margins should not be interpreted as a departure from the administration’s existing policy.
“I can confirm that this is not reversing the course of subsidy that was established since the onset of the administration of President Bola Tinubu,” the minister said.
He further argued that the NNPC, despite being government-owned, operated as a limited liability company and could review its commercial margins when necessary to protect national energy interests.
According to him, the decision was intended to create a buffer that would help consumers cope with the latest price increases while preserving the country’s energy security.
“NNPC is not just there to supply fuel. It is also there to ensure that there’s also energy security for our country because this is a critical component of national development,” Idris stated.
He described the measure as temporary, saying it would give Nigerians time to adjust to the new economic realities before normal market conditions resumed.
“If indeed they said, okay, we are shedding off some part of this cost so that Nigerians can at least adjust to the new realities that we are facing for a short period of time and then return to normal issues later, I don’t think that it is that bad,” he added.
The government’s position comes amid persistent concerns over the cost of living, with households and businesses continuing to grapple with rising expenses despite the administration’s economic reforms.
Idris acknowledged that many families were still struggling but insisted that the government was working to ensure that improvements in key economic indicators translated into tangible benefits for ordinary Nigerians.
“We recognise that many households continue to face cost-of-living pressures. That is precisely why the President remains focused not only on stabilising the economy, but also on making the benefits of recovery visible in the daily lives of our people,” he said.
He listed job creation, stronger businesses, more affordable essential services and improved purchasing power among the outcomes the administration hoped to achieve through its economic policies.
The minister said the government’s priority was to make the reported economic recovery more evident in the daily experiences of Nigerians, including their ability to afford food, shop for essential goods and purchase fuel.
“Our task now is to ensure that this clear macroeconomic recovery is felt even more widely in the lives and households of Nigerians: on the dinner table, in shops and markets, at the petrol station, and in pockets and wallets. I am pleased to say that work is already under way,” Idris said.
On workers’ welfare, he recalled participating in discussions between the government and organised labour over the national minimum wage, saying the President had anticipated some of the issues raised during the negotiations that culminated in the ₦70,000 minimum wage.
He said the administration recognised the need for regular engagement on wages and workers’ welfare as economic conditions evolved.
Meanwhile, Idris cited several economic indicators to support the government’s position that its reforms were beginning to yield results.
He said Nigeria’s economy was projected to grow by more than four per cent in 2026, while the country’s current account surplus increased to $12bn in the first half of the year, compared with $8.6bn recorded during the corresponding period of 2025.
The minister also said inflation had declined from approximately 27 per cent in January 2025 to around 15 per cent, although he acknowledged that the government was still targeting a single-digit inflation rate.
“Inflation has fallen from about 27 per cent in January 2025 to around 15 per cent today, an encouraging improvement in the outlook for household budgets. Our ultimate target remains single-digit inflation,” he said.
Idris further disclosed that Nigeria’s external reserves exceeded $54bn in September, describing the figure as the highest level in almost two decades.
He added that relative stability in the foreign exchange market had improved the ability of businesses and investors to plan their activities with greater confidence.
“The macroeconomic numbers have turned the corner, and I would ask that we always look at what they mean beyond the headlines,” the minister said.
Despite the improvements cited by the government, Idris acknowledged that the administration still faced the challenge of ensuring that economic gains translated into meaningful relief for households dealing with high living costs and rising fuel prices.
