MORGANABLE News/National Affairs
The development comes as NNPC extended its N66-per-litre discount until October 31, a move that could reduce its gross revenue by an estimated N4.62bn if all its reported average monthly petrol sales of 70 million litres qualify for the price reduction.
KaNo —
The Nigerian National Petroleum Company Limited has restricted access to its N66-per-litre petrol discount to customers who download its mobile application and make payments digitally, leaving motorists who pay directly at filling station pumps to purchase the product at the prevailing price.
Checks at NNPC retail outlets in Abuja on Friday showed that petrol was selling for N1,405 per litre to customers paying directly at the pumps, while motorists using the company’s mobile application paid N1,339 per litre.
The arrangement means that the Federal Government’s initiative to cushion the impact of rising petrol prices does not automatically benefit every customer visiting NNPC filling stations.
It also raises concerns about accessibility, particularly for commercial transport operators and other motorists who may be unfamiliar with the company’s digital payment platform or lack the means to transact through the application.
The development comes as NNPC extended its N66-per-litre discount until October 31, a move that could reduce its gross revenue by an estimated N4.62bn if all its reported average monthly petrol sales of 70 million litres qualify for the price reduction.
At the NNPC mega station along Obasanjo Way in Abuja, a fuel attendant confirmed that customers could only access the discount through the company’s application.
“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, who spoke on condition of anonymity, said.
Similar pricing arrangements were observed at other NNPC retail stations across the Federal Capital Territory.
The discount was initially introduced on October 1 to commemorate Nigeria’s 66th Independence Anniversary but was extended following discussions between the company and the Federal Government.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the extension on Thursday, explaining that the intervention was intended to provide temporary relief amid rising international crude oil prices associated with the conflict in the Middle East.
In a statement on Friday, NNPC confirmed that the promotion would continue nationwide until October 31.
NNPC Faces N4.62bn Revenue Reduction
The extension could result in an estimated N4.62bn reduction in NNPC Retail’s gross sales revenue if its reported monthly sales volume of 70 million litres is sold at the discounted rate.
Oyedele disclosed the sales figure while speaking on Channels Television’s Politics Today, explaining that NNPC Retail supplied approximately 70 million litres of petrol monthly.
At the prevailing pump price of N1,405 per litre, the volume would generate about N98.35bn in gross sales revenue.
However, selling the same quantity at N1,339 per litre would generate approximately N93.73bn, representing a difference of N4.62bn.
The estimate assumes that all 70 million litres qualify for the discount. The actual reduction would depend on the volume of petrol purchased through the application and the company’s sales during the promotional period.
The difference in gross revenue does not necessarily translate into a loss of profit, as the company maintains that the discount is being funded from its retail margin.
Oyedele explained that the initiative was originally conceived as a promotional offer to encourage customers to adopt NNPC’s digital platform.
He said the company introduced the discount as part of its Independence Day activities, offering customers N66 off each litre of petrol purchased through its application.
The minister said he subsequently contacted the company to determine whether the arrangement would affect its financial position and advised it to ensure that the discount did not exceed its profit margin.
According to him, NNPC’s relatively small share of the petrol market makes the intervention manageable while providing an opportunity to attract more customers to its retail outlets.
He also maintained that the initiative was a commercial discount rather than a government-funded subsidy.
Oyedele said NNPC purchased petrol from the Dangote refinery at N1,325 per litre before adding its operating costs and profit margin to determine its selling price.
He explained that the company was foregoing part of its margin during the promotional period rather than receiving government funding to reduce the pump price.
“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,” the minister said.
He added that the government had encouraged NNPC to prioritise public transport operators and initially limit the intervention to 30 days, subject to a review of international oil prices.
FG Rules Out Return To Petrol Subsidy
Oyedele also ruled out a return to the previous petrol subsidy regime, warning that restoring broad-based price support would place a significant burden on public finances.
According to the minister, reinstating the subsidy arrangement that existed before the reform could cost the Federal Government approximately N20tn annually.
He further estimated that reducing petrol prices to N500 per litre could require about N16tn yearly.
“If you take the subsidy back to where it was before the reform, it will cost about N20tn a year. It doesn’t matter what you call it, whether it’s production or not,” he said.
The minister argued that such expenditure would compete with funding for essential public services, including salaries, pensions, education, healthcare and infrastructure.
He also explained that Nigeria could not currently supply all the crude oil required by the Dangote refinery because domestic production was distributed among the Federal Government, joint-venture partners and other contractual interests.
Oyedele maintained that the government’s priority remained the preservation of market-based petroleum pricing, alongside efforts to improve domestic supply and reduce dependence on imported petroleum products.
In a statement issued on Friday, NNPC’s Chief Corporate Communications Officer, Andy Odeh, said the company would continue offering the N66-per-litre discount at its retail stations nationwide until October 31.
The company said the extension followed the Federal Government’s renewed efforts to ease the impact of rising fuel prices on households, businesses and the wider economy.
“Following the statement by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on 8 October 2026, NNPC Limited reiterates its commitment to working with the government and stakeholders to cushion the impact of rising fuel prices on households, businesses and the wider economy,” the statement read.
NNPC said the discount, introduced on October 1, would remain available throughout the extended promotional period.
The company stressed that the initiative did not amount to a restoration of petrol subsidy and would not establish a uniform national pump price or alter the market-based pricing framework governing petroleum products.
It acknowledged that higher petrol prices had increased the cost of commuting and running businesses, placing additional pressure on household budgets and livelihoods.
“We recognise that higher petrol prices affect everyday life, from the cost of commuting to the expenses of running a business,” the company stated.
NNPC added that it remained committed to maintaining reliable petroleum product supplies while operating on a commercially responsible basis.
It also said it would continue communicating the scope and duration of its customer initiatives to enable Nigerians to make informed purchasing decisions.
The company urged Nigerians to disregard suggestions that the discount represented a return to the subsidy regime, assuring motorists of continued product availability and responsible customer service.
However, with the discount tied to digital payments, motorists who do not use the application will continue to pay the prevailing pump price at participating stations, limiting access to the relief for customers who rely on direct payments at the pumps.
