Motorists seeking to benefit from the Federal government’s N66-per-litre petrol discount must download the Nigerian National Petroleum Company Limited (NNPCL) mobile application and pay digitally, as the reduction is not automatically available to customers who pay directly at filling station pumps.
Reports of surveys conducted at NNPCL retail outlets in Abuja on Friday said that petrol was still selling for N1,405 per litre for customers paying directly at the pump, while motorists using the company’s mobile application paid N1,339 per litre.
The arrangement means motorists who do not use the digital platform cannot automatically access the discount, raising concerns about how easily commercial transport operators and other customers unfamiliar with the application can benefit from the relief.
At the NNPCL mega station along Obasanjo Way, an attendant confirmed that the discount was available only to customers who downloaded the application and completed their payments through it.
“You can only qualify for the N66 discount if you download the app. You would also make payment via the application. So, it is not yet directly when you come to our pump stations.
“You just download the app and follow the procedure. We are still selling at N1,405, but in the app it is N1,339,” the attendant said.
Reports also revealed similar pricing arrangements at other NNPCL retail stations across the Federal Capital Territory.
The discount was initially introduced on October 1 to commemorate Nigeria’s 66th Independence Anniversary. Following an announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Thursday, NNPCL extended the promotion until October 31.
The initiative, the government said, is intended to offer temporary relief to motorists amid rising petrol prices linked to higher international crude oil prices and the conflict in the Middle East.
Experts say the NNPCL could forgo an estimated N4.62 billion in gross revenue under the discount arrangement if all its reported average monthly petrol sales of 70 million litres qualify for the reduction.
Oyedele disclosed the sales volume during an interview on Channels Television’s Politics Today, explaining that NNPCL Retail supplies approximately 70 million litres of petrol monthly.
At the prevailing pump price of N1,405 per litre, sales of 70 million litres would generate about N98.35 billion in gross revenue.
At the discounted price of N1,339 per litre, the same volume would generate approximately N93.73 billion, a difference of N4.62 billion.
The estimate assumes that all 70 million litres qualify for the discount. The actual reduction in revenue would depend on the volume purchased through the application and sales recorded during the promotional period.
The estimated difference in gross revenue does not necessarily represent a loss of profit, as NNPCL has said the discount is being funded from its retail margin.
Oyedele explained that the promotion was initially designed to encourage customers to adopt the company’s digital payment platform.
“On 1st of October, they said Nigeria is turning 66. They did an app. They wanted people to adopt it. Promo. They said, if you come and buy fuel and you download our app, you get ₦66 less,” he said.
The minister said he contacted NNPCL to determine whether the initiative would adversely affect its financial position.
He added that he advised the company to calculate its profit margin and limit the discount to that amount, to ensure the promotion does not undermine its operations.
According to Oyedele, the company’s relatively small share of the petrol market made the offer manageable while providing an opportunity to attract more customers.
He maintained that the discount was a commercial initiative rather than a government-funded subsidy.
“The point is that what NNPC is selling at after the discount is still market-reflective. Because they told me they are buying all of it from Dangote. Dangote is not giving a subsidy.
“So when they buy at N1,325 from Dangote, they add their own cost to it, their profit. And they sell. For this period, they are taking out only their own profit element. That’s why we call it margin discount. That’s number one point. It is not a subsidy,” he said.
Oyedele added that the government has encouraged NNPCL to prioritise public transport operators and initially limit the intervention to 30 days, subject to a review of international oil prices.
The minister also ruled out a return to the former petrol subsidy regime, warning that restoring broad-based price support would place a substantial burden on public finances.
According to him, reversing the subsidy removal could cost the Federal government approximately N20 trillion annually, while reducing petrol prices to N500 per litre could require about N16 trillion each year.
“If you take the subsidy back to where it was before the reform, it will cost about N20 trillion a year. It doesn’t matter what you call it, whether it’s production or not,” Oyedele said.
He argued that such expenditure would compete with funding for salaries, pensions, education, healthcare and infrastructure.
Oyedele also said the government cannot currently supply all the crude oil required by the Dangote refinery because Nigeria’s crude production is shared among the government, joint-venture partners and other contractual interests.
He said the government remains focused on maintaining market-based pricing, improving domestic supply and reducing dependence on imported petroleum products.
In a statement issued on Friday, NNPCL’s Chief Corporate Communications Officer, Andy Odeh, confirmed that the N66-per-litre discount would continue until October 31 at the company’s retail stations nationwide.
Odeh said the extension followed the Federal government’s renewed efforts to cushion the impact of rising fuel prices on households, businesses and the wider economy.
He said the company introduced the discount on October 1 as part of its Independence Day promotion before extending it following the finance minister’s announcement on October 8.
NNPCL stressed that the offer is a customer relief initiative and does not amount to a reintroduction of petrol subsidy.
The company also clarified that the arrangement would not establish a uniform national pump price or alter the market-based pricing framework governing petroleum products.
“We recognise that higher petrol prices affect everyday life, from the cost of commuting to the expenses of running a business.
“We understand the strain on families and livelihoods, and this discount is intended to provide direct relief to customers during this difficult period,” the statement said.
NNPCL reiterated its commitment to maintaining reliable petroleum supplies while operating on a commercially responsible basis.
It also urged Nigerians to disregard claims that the discount represents a return to the subsidy regime, assuring motorists of continued supply and responsible customer service.
- Media Report