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Moves to ease Nigerians’ burden, bleeding economy
BY COBHAM NSA – Amid intense public pressure over skyrocketing energy costs that threaten to paralyze everyday commerce, the Federal Government has unveiled a sweeping, 10-point emergency strategy designed to shield citizens from the crushing impact of high fuel prices nationwide.
However, despite the aggressive intervention, which marks a critical turning point in its determination to stabilize the economy and defuse growing social discontent, the government is insisting that none of the measures are meant to bring back the controversial old fuel subsidy regime.
Presenting the measures at a media briefing on “Fuel Prices and the Subsidy Question” in Abuja, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that the newly minted plan is a direct assault on transport and living costs and the blueprint deploys a mix of immediate subsidies, alternative energy rollouts, and targeted financial cushions targeted squarely at vulnerable households across the country.
Oyedele said aware that critics and citizens are watching closely to see if this massive policy pivot will be enough to cool down a boiling economy, the President Bola Ahmed Tinubu-led administration has decided to go further since earlier steps fell short of fully relieving the pressure households feel today.
He explained that the massive economic lifeline to the nation is captured in this 10-point roadmap engineered to aggressively drive down living costs and offer Nigerians succour in the face of biting economic hardship occasioned by the relentless energy crisis in the country.
Describing the new package as “Help that is targeted, temporary and affordable”, the Minister pointedly said the help is meant for those who need it most, will not last forever, emphasizing that the package is designed in a manner that the country can easily off-set the huge cost implications.
Outlining the plans, Oyedele said the first measure is a discount on petrol sold at NNPC filling stations where the discount will last for the next 30 days, with public transporters, particularly commercial bus and taxi operators, receiving priority attention, adding that administration is banking on this decisive measure to slam the brakes on skyrocketing transit costs, keeping commuter fares firmly grounded before they can spiral out of control
He said to cushion the economic blow, the government is substantially expanding direct cash transfers to vulnerable families while pumping subsidized, low-interest credit into struggling small businesses buckling under soaring operational costs.
To protect Nigerians from sudden jumps in world oil prices, the government will sell crude oil in advance to local refineries. This is expected as oil production rises and crude previously committed to other purposes becomes available. The presentation says this will shield “pump prices from global swings.”
With eyes on introducing what it considers price modulation, the Minister said under this plan, government is negotiating a limit of ₦1,350 per litre that will apply to the ex-gantry price (the price at the depot) or the landing cost (the cost of bringing the fuel into the country). explaining that the limit will be reviewed every month to ensure fluid adaptability to any changing environment
A National Strategic Fuel Reserve will also be set up. Fuel from the reserve will be released “under published rules when disruption or hoarding threatens supply.” This means the government can step in when fuel becomes scarce or when marketers hold back products to push up prices.
Also addressing issues around lowering the cost of transport and ease of doing business nationwide, the Minister stated that since part of what Nigerians pay for transportation comes from illegal charges on the roads, the Federal government will collaborate effectively with State governments under the 2025 tax laws to rein in road taxes that have continued to push up transport fares across board.
Additionally, he said plans are underway to speed up the rollout of Compressed Natural Gas (CNG) as a cheaper alternative to petrol, working with the states, adding that transporters who benefit from cheaper fuel are expected to “pass savings on in lower fares” to passengers.
As part of the multi-pronged assault on the everyday expenses choking citizens, Oyedele said at the heart of the strategy is a aggressive campaign to slash bureaucratic “red tape” regulatory costs that directly inflate retail prices, adding that to further ease the burden, government has plans to untangle urban traffic gridlocks to drastically cut fuel waste, while leveraging NIPOST address codes to streamline logistics and drive down the high cost of moving goods across the country.
The Minister also mentioned that tax on excess profits is under consideration as one of the proposed measure, saying though a decision has not been taken yet, the government is looking at an excess profit tax on operators seen to be exploiting consumers, adding that if it goes ahead, the money raised will fund transport support and vouchers for low-income earners.
Drawing a firm line against fuel subsidy policy U-turn, Oyedele said the clear message from the government to Nigerians is that there will be no restoration of a blanket fuel subsidy, saying: “None of these measures restores a blanket subsidy. The government is therefore not returning to the old system, where fuel was sold cheaply to everyone. It says its new approach will reach “the people who need help without putting the wider economy at risk.”
Earlier in his intervention, the Minister of Information and National Orientation, Alhaji Mohammed Idris said challenges notwithstanding, Nigeria at 66 remains a Nation of enormous promise and urged the media to always put the country first while reporting and ensure the focus is on properly educating and informing Nigerians about government policies and programmes.
According to him, as vital stakeholders, media practitioners bear a patriotic responsibility to ensure their reporting drives national development, progress, and unity, rather than fueling hopelessness, division and discord among the people.
