As part of efforts to reduce the cost of living, the Federal Government has waived N3.3 trillion in fuel taxes and duties.
President Bola Tinubu who disclosed this in a series of posts on his X handle, defended the government’s response to rising petrol prices.
Tinubu says the tax waiver would complement the Nigerian National Petroleum Company (NNPC) Retail’s decision to forgo its profit margin for 30 days to provide temporary relief.
He reaffirmed that the country’s economic reforms were beginning to yield results, citing lower transport costs, improved growth projections and increased resources available to federal and state governments.
He acknowledged, however, that the gains had yet to translate sufficiently into better living conditions for many Nigerians, promising to intensify efforts to reduce food prices, create jobs and expand access to essential services.
Tinubu said: “I also recognise the pressure rising petrol prices place on families and businesses.
“To cushion the impact, we have waived over N3.3 trillion in fuel taxes and duties.
“NNPC Retail is foregoing its profit margin for 30 days, prioritising public transport operators, while we work towards a N1,350-per-litre ceiling on wholesale petrol supply costs to reduce price volatility.”
Tinubu highlighted the benefits of the government’s investment in compressed natural gas (CNG) and electric-powered transport.
He said testimonies from commuters and commercial transport operators showed that investments in CNG and electric-powered vehicles were beginning to reduce transportation costs in some parts of the country.
He cited the experience of Blessing, whose journey from Masaka to Berger now costs N500, down from N1,500, representing a saving of N1,000, or about 67 per cent, per trip.
“That is N1,000 saved every trip. I know what that means when you have a family to feed, bills to pay and other responsibilities waiting at home,” the President said in a message addressed to her.
Two other commuters, Ada and Abigail, said their transport fares between Enugu and Nsukka had fallen from N4,000 to N1,600, saving them N2,400 per journey, or 60 per cent.
Tinubu also cited Kabir, a commercial taxi driver who said spending N10,000 on CNG enabled him to undertake three additional return trips compared with colleagues using petrol-powered vehicles.
According to the President, the driver was so impressed by the savings that he had resolved not to return to petrol-powered transportation.
In Borno State, some commuters pay as little as N50 per trip on government-supported CNG and electric-powered vehicles.
“Your various experiences show what our investment in CNG transportation is intended to achieve.
“Lower operating costs for drivers should translate into more affordable fares for passengers, leaving families with more money for their everyday needs,” Tinubu said.
The President acknowledged that the benefits were not yet available to everyone, promising to expand the initiative through collaboration with state governments and private investors.
Responding to a request by a Nigerian, Emmanuel, for more buses, he said: “I heard you.”
Tinubu said the initiative was also expanding the infrastructure required to make alternative-energy transportation more accessible.
More than 400 certified conversion centres have been established nationwide, with over 120,000 vehicles converted from petrol to CNG.
The administration is also expanding refuelling infrastructure, with more than 90 CNG stations reportedly available across the country and further investments planned.
Tinubu said the government would continue working with state governments and private investors to extend the services to communities still waiting for affordable transportation.
He acknowledged that the removal of petrol subsidy on May 29, 2023, had imposed difficulties on households but argued that the government had a responsibility to develop sustainable alternatives.
“When we removed the petrol subsidy, I knew the decision would bring difficulties for many households. With that decision came a responsibility to provide practical alternatives that would ease transportation costs,” he said.
Tinubu said Ekiti had received 15 CNG buses, Lagos 20, while Akwa Ibom had 50 buses ready for service.
Katsina had introduced 30 CNG hybrid buses and 200 electric tricycles, while Kano had received 30 CNG buses and five electric buses. Another deployment was scheduled for Edo State.
Ekiti State Governor Biodun Oyebanji inaugurated 15 CNG buses on October 1, announcing plans to reduce fares by 50 per cent on designated routes.
Vice-President Kashim Shettima launched CNG hybrid buses and 200 electric tricycles in Katsina on October 4.
The President outlined measures intended to cushion the immediate impact of rising petrol prices on households and businesses.
He said the Federal Government had waived more than N3.3 trillion in fuel taxes and duties, while NNPC Retail was foregoing its profit margin for 30 days, with priority given to public transport operators.
The government was also working towards a proposed ceiling of N1,350 per litre on wholesale petrol supply costs to reduce price volatility.
The measures followed an announcement last Thursday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that NNPC Retail would temporarily sell petrol at cost price by absorbing its usual retail profit margin.
Oyedele said the arrangement did not amount to a restoration of petrol subsidy because the discount would be funded from the company’s commercial margins rather than direct payments from the Federation Account.
The government also announced plans to negotiate the proposed wholesale cost ceiling with refiners and importers, accelerate CNG adoption, strengthen domestic fuel supply arrangements and address road levies contributing to transportation and logistics costs.
Tinubu maintained that the combination of short-term relief and longer-term investment in alternative transportation would ease hardship without compromising fiscal sustainability.
“As President, I have a duty to provide relief today without compromising our children’s future,” he said.
“Every commitment must be sustainable and backed by a credible plan. That responsibility guides our decisions, including the difficult ones.”
In an apparent reference to economic promises being made ahead of the 2027 general election, the President challenged political actors to explain how their proposals would be funded and sustained.
“Anyone seeking to lead Nigeria should be prepared to explain what their promises will cost, how they will deliver them, and whether they can sustain them,” he said.
Tinubu’s defence of the reforms coincided with the release of the World Bank’s October 2026 Nigeria Development Update, titled: “Beyond the federal purse: How higher revenues reshaped state priorities.”
In a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the President welcomed the report, saying it confirmed that the government’s economic recovery programme was producing results.
According to the report, Nigeria’s economy grew by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the corresponding period of 2025, despite disruptions associated with the conflict in the Middle East.
The World Bank projected average economic growth of at least 4.4 per cent between 2026 and 2028, with poverty expected to decline gradually as economic expansion outpaces population growth.
The report indicated that Nigeria had recorded its first stabilisation in the poverty rate since 2019, although the outlook for a sustained decline depended on continued growth and the translation of economic gains into improved household welfare.
Tinubu attributed the progress to the removal of the petrol subsidy, the unification of the foreign exchange market and stronger fiscal discipline.
“These findings confirm that the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people,” he said.
“The dividends of reform are becoming visible. But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people.”
The report also showed that inflation moderated from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices linked to the Middle East conflict had slowed the pace of disinflation.
The World Bank projected that inflation would ease to approximately 12 per cent by 2028.
Nigeria’s current account surplus rose to $12 billion, representing about seven per cent of gross domestic product (GDP), in the first half of 2026, compared with $8.6 billion in the corresponding period of 2025.
Gross external reserves also increased from $45.5 billion at the end of December 2025 to $53.8 billion by the end of August 2026.
The report further estimated that economic reforms introduced since 2023 contributed to a 69 per cent increase in federation revenues in real terms between 2023 and 2025.
State governments emerged as the biggest beneficiaries of the additional resources, increasing capital expenditure by 151 per cent in real terms during the period, with investments directed towards roads, transportation, agriculture, energy and housing.
Twenty-nine of the 33 states assessed shifted spending towards economic infrastructure, while real social expenditure per person increased in all but one of the states covered.
Internally generated revenue increased in real terms in 31 of the 35 states assessed, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
At the national level, public debt was projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
With more resources flowing to the states, Tinubu urged governors to demonstrate greater prudence and accountability by directing public spending towards projects that improve citizens’ welfare.
“I urge state governments to use their higher revenues more prudently and prioritise projects that improve the living standards of Nigerians, and the health and education of our people,” he said.
He promised to sustain the reform programme while intensifying interventions to ensure that improved economic indicators translated into tangible benefits.
The President said targeted cash transfers had already reached more than 10 million households, adding that the government would accelerate CNG deployment, raise agricultural productivity and improve access to affordable healthcare and quality education.
He also commended the Economic Management Team, led by Oyedele, governors and other stakeholders for their cooperation in implementing the reforms.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda,” he said.
Tinubu expressed confidence that sustained implementation, fiscal discipline and collaboration among the three tiers of government would help move Nigeria from economic stabilisation to improved living standards.
Nigeria Democratic Congress (NDC) presidential candidate Peter Obi questioned whether the administration’s 30-day petrol intervention could make a meaningful difference to the economic pressures confronting Nigerians.
In a statement on his X handle, the former Anambra governor said he had delayed commenting on the initiative to allow time to assess its implementation and outcomes.
He described the measure as reactive and questioned the rationale for a temporary petrol discount that, according to him, amounted to less than five per cent.
Obi recalled the removal of petrol subsidy on May 29, 2023, arguing that the decision was taken without adequate consultation or proper assessment of its likely consequences for the economy and household livelihoods.
He also criticised the subsequent floating of the naira and tax reforms, which he said were implemented in a poorly coordinated manner.
The opposition politician further faulted the simultaneous operation of three budgets, raising concerns about transparency and accountability in public finance management.
According to him, the combined effects of the policies had contributed to rising prices of goods and services, worsening poverty, shrinking economic opportunities, business closures, unemployment, insecurity and widening inequality.
He also cited the migration of young Nigerians and a general decline in citizens’ well-being as consequences of the economic situation.
Obi accused the Tinubu administration of failing to conduct and publish detailed regulatory impact assessments of its policies. He argued that such assessments would help the government evaluate the consequences of its decisions and engage stakeholders and ordinary Nigerians in developing more inclusive economic strategies.
He questioned whether the 30-day petrol intervention could significantly reduce poverty, unemployment, insecurity and inequality or improve productivity and exports.
Obi also asked whether the initiative was intended to test the possibility of restoring petrol subsidy or was politically motivated ahead of the 2027 general election.
“Too many questions, no answer!” he said, urging the government to explain how the temporary intervention would address the broader economic challenges confronting Nigerians.
The competing positions leave the administration facing a test that extends beyond economic growth figures and temporary price relief: whether the reforms can deliver sustained reductions in living costs, more jobs and improved living standards for the millions of Nigerians still waiting to feel their effects.
