Introduction

The Centre for Promotion of Private Enterprise (CPPE) has called on the Federal Government to implement urgent, socially sensitive measures as rising petrol prices continue to pressure households and businesses across Nigeria.

What Happened

Petrol prices increased from N1,300 to N1,430 per litre following the removal of the fuel subsidy. In a policy brief issued on Sunday, CPPE Chief Executive Dr. Muda Yusuf argued that targeted interventions would be more effective and fiscally sustainable than reverting to a universal fuel subsidy regime.

  • Price hike reflects the new pump rate after subsidy removal.
  • CPPE released a policy brief emphasizing targeted relief over subsidy restoration.

Why This Matters

The price increase affects transportation, logistics, electricity supply, food security, healthcare, education, and social protection. CPPE stresses that resources generated from subsidy removal should translate into tangible benefits for citizens through improved public services and infrastructure, rather than being absorbed by fiscal deficits.

Yusuf noted that the reform's credibility depends on transparency and accountability in how additional fiscal resources are deployed, with citizens expecting to see measurable improvements in their daily lives.

Key Takeaways

  • CPPE opposes returning to the universal fuel subsidy regime, calling it fiscally unsustainable.
  • Targeted support should prioritize transportation, electricity, food security, healthcare, education, and social protection.
  • Greater transparency in subsidy savings management is essential to build public trust.
  • Investment in mass transit, CNG infrastructure, and solar energy can reduce long-term dependence on petrol.
  • MSMEs and vulnerable households need specific relief measures to offset rising operating costs.
  • Food security initiatives, including irrigation and rural logistics, are vital to moderating inflation.

Conclusion

CPPE's recommendations underscore the importance of preserving downstream petroleum reforms while aggressively mitigating their social and economic costs. By directing subsidy savings toward accountable public investments and productive sectors, the government can foster a more resilient economy and restore citizen confidence in the reform process.