Local, Intl stakeholders’ hails Oyedele on fiscal reforms

By Henry Ojelu

Some local and international stakeholders in the petroleum and economic sectors have commended the Federal Government’s interventions to cushion the impact of rising petrol prices, while calling for transparency and effective implementation to ensure Nigerians benefit.

The commendations followed recent measures announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, including a 30-day petrol discount at Nigerian National Petroleum Company Limited (NNPC) Retail stations, proposed forward sales of crude oil to domestic refineries and negotiations on a ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost.

Among the local stakeholders that have welcomed aspects of the interventions are Nath Oguche, President of the Coalition of Citizens Groups for Good Governance; Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng; the Alliance for Economic Research and Ethics (AERE); and the Crude Oil Refiners Association of Nigeria (CORAN).

Oguche, in a statement issued by the coalition, described the petrol discount as a positive step towards easing the burden of high fuel prices on households and businesses.

The coalition also welcomed efforts to improve transparency and operational efficiency at NNPC, including the introduction of self-service smart pumps, but urged the company to ensure that consumers benefit directly from the initiatives.

Similarly, Olatide welcomed the Federal Government’s plan to sell crude oil to domestic refineries through forward contracts, saying the arrangement could ease pressure on refiners and help moderate domestic fuel prices.

He said the proposal demonstrated the government’s response to industry concerns about the impact of rising international crude oil prices on local fuel costs.

The forward-sales arrangement is intended to give domestic refiners greater certainty over crude supply and reduce their exposure to fluctuations in international prices.

Meanwhile, AERE acknowledged that the N66-per-litre discount could provide some relief to motorists, particularly if the reduction translates into lower transport fares.

The organisation, however, urged NNPC to publish weekly data on the scheme, including participating outlets, volumes sold, average discounts and the effect on the company’s profit margins.

It also called on the government to ensure that the intervention remained temporary and did not evolve into another broad-based fuel subsidy.

Oyedele had explained that the petrol discount did not amount to a restoration of subsidy because NNPC Retail was absorbing the reduction through its profit margin rather than receiving direct payments from public funds.

The minister also announced negotiations on a proposed ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost. Under the proposed arrangement, refiners and importers would initially absorb costs above the threshold and recover the difference when market conditions improved.

Other measures include forward crude sales to domestic refineries, targeted support for vulnerable households and small businesses, accelerated adoption of compressed natural gas (CNG), and plans to remove illegal road levies that increase transportation and distribution costs.

CORAN has backed the proposed forward-sales arrangement in principle, saying it could improve feedstock certainty and reduce refiners’ exposure to volatile international prices.

However, the association’s spokesperson, Eche Idoko, questioned the proposed price ceiling and demanded clarity on how the government arrived at the figure and how refiners would recover costs exceeding the threshold.

He also called for transparent pricing and equal access to crude supplies for large and smaller domestic refineries.

The interventions come amid rising petrol prices and mounting pressure on households and businesses over transportation and operating costs.

While stakeholders have welcomed aspects of the government’s response, they have stressed the need for transparent implementation, clear pricing arrangements and measurable outcomes to ensure the measures deliver meaningful relief.

The Federal Government has maintained that the interventions are intended to cushion the impact of global oil-market volatility without returning to the former broad-based petrol subsidy regime.

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