‘Form Of Subsidy’: Osifo, Adewole Question FG’s 30-Day Fuel Discount

Reactions have continued to trail the Federal Government’s introduction of a 30-day fuel discount, with the presidential candidate of the Social Democratic Party (SDP), Adewole Adeboye, and the president of the Trade Union Congress (TUC), Festus Osifo, questioning the move.

Adewole and Osifo both featured as guests on Thursday’s edition of Channels Television’s Politics Today, hours after the Minister of Finance and the Coordinating Minister of the Economy, Taiwo Oyedele, announced the 30-day window.

While expressing concerns over the policy design and its implementation, Adewole dismissed the Federal Government’s move, describing it as uncoordinated.

“I watched the announcement video, but there is no actual plan behind it—so I cannot even tell whether it is a formal policy or just a political gesture,” the SDP chieftain said on the show. “It immediately reminded me of the 1990s television series *Fuji House of Commotion*. What they presented is essentially ‘Tinubu’s House of Commotion.’ It makes no sense whatsoever.”

According to him, the 30-day fuel discount window does not have legal backing and structural clarity, which ultimately raises questions about the funding model.

“Besides the NNPC, none of the people seated there belong in that decision. The NNPC is supposed to be a limited liability company with its own independent management,” Adewole said. “Second, there is no designated account established under the Ministry of Finance to handle petrol discount subsidies. Third, a 30-day window is not a short-term policy—it is a flash in the moment, lacking short-, medium-, or long-term vision. Furthermore, they did not cite a single law authorising what they are doing.”

He cautioned against artificially trying to slash petrol prices without addressing production costs.

“If you want to lower petrol prices, you do not adjust the retail selling price out of thin air—you adjust the cost of production,” he said. “It is a tragedy for a country when the person positioned to coordinate our economy reduces his thinking to the level of a petrol station attendant giving out discounts. A fuel attendant’s level of intellect cannot manage monetary and fiscal policy. What I have repeatedly advised them to do, and what I would do as President, is allocate crude oil explicitly for domestic consumption.”

Form of Subsidy

Joining the debate, Osifo faulted the framing of the policy, insisting that despite the term used, any move to cap the price of fuel is a subsidy.

“You and I know very well that whenever you cap the price of any product – whether that cap will be high or that cap will be low – it is a subsidy in one form or the other.”

The TUC chief said past governments have used “fancy” terms to mask fuel price interventions.

He explained that “when the gantry price is more than ₦1,350—let’s say it’s ₦1,500—and the government is taking off that cost of ₦150, you’re actually subsidising the product, so it’s actually a subsidy.”

The Federal Government announced the policy to cushion the cost of fuel across the country. According to Oyedele, the move is not a subsidy, describing it as an arrangement by the government to sell the petrol at cost.

“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance with priority for public transporters nationwide. So, it’s not a subsidy; the government is just saying we sell to you at cost,” the Minister said.

He said that the Federal Government is targeting a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol.

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