The Nigerian government has introduced a 30-day fuel discount, offering petrol at ₦1,350 per litre at NNPC stations nationwide. This move follows public outcry over the high cost of fuel, which has reached ₦1,400 per litre in Abuja and even higher in other locations. The discount was announced by Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, on October 8.
The government's decision comes amid rising concerns about poverty and economic hardship in Nigeria. According to the World Bank Country Partnership Framework report released on June 29, 2026, 61% of Nigerians, or 139 million people, live below the poverty line. Of these, 33% are classified as ultra-poor, struggling with food insecurity and unable to meet their minimum calorie intake.
The report also indicates that 79% of Nigerians are considered poor or vulnerable, either living below the poverty line or being one shock away from it. The poverty rate has been on an upward trend since 2019, rising from 40% in 2018/19 to 56% in 2022/23, and further to 61% in 2024 and 63% in 2025.
Economists and industry players have argued that the government's approach to economic reforms has been inadequate, particularly on the microeconomic front. Dr. O.A. Lawal, a renowned economist, noted that while the government has made macroeconomic gains, its priorities on the microeconomic front have been misplaced.
The high cost of fuel has been a major concern, with many Nigerians struggling to afford it. Industry players, including Gbenga Hashim, presidential candidate of the Accord Party, have suggested that fuel can be made available at a lower price. The government's insistence on not reinstating subsidies, citing corruption and smuggling, has been met with criticism.
Analysts argue that the naira's undervaluation is another issue that needs to be addressed. Allowing the naira to find its true value could help reduce fuel prices. The government's decision to remove subsidies was made to address corruption and smuggling, but critics argue that this has not solved the problem and has instead led to increased poverty.
Previous administrations have also implemented subsidies, with varying degrees of success. President Olusegun Obasanjo's government paid ₦812 billion in subsidies, while Muhammadu Buhari's government spent ₦11.7 trillion between 2015 and 2023. The current government's approach has been to focus on macroeconomic gains, but critics argue that more needs to be done to address the welfare of citizens.
Key points
- The Nigerian government's petrol discount may not be enough to alleviate economic hardship.
- 61% of Nigerians live below the poverty line.
- The government's approach to economic reforms has been criticized for being inadequate on the microeconomic front.
