FG working to bring down inflation, says Presidency

The Federal Government is actively working to reduce inflation to a single-digit level, according to Bayo Onanuga, the Presidency's spokesperson. This announcement came alongside a series of new measures to assist Nigerians amid the ongoing global fuel crisis. The cost of fuel has reached an unprecedented high due to the Strait of Hormuz blockade resulting from the US-Iran conflict.

Earlier on Thursday, Finance Minister Taiwo Oyedele revealed that fuel would be sold at a reduced rate at NNPC filling stations for a period of 30 days. Oyedele clarified that this move is not intended to reinstate the subsidy, which was discontinued on May 29, 2023. However, many Nigerians, particularly on social media platforms, perceived it as an attempt to subsidize the product.

In his statement, Onanuga said, "The Nigerian National Petroleum Company (NNPC) has agreed to forgo its petrol retail profit margin and sell petrol to Nigerians at the production cost, aiming to alleviate the impact of global crude oil price shocks and volatility on vulnerable households." The NNPC, which currently sells petrol at the lowest price in the market, will implement this new deal within the next 30 days.

This discount, backed by President Bola Ahmed Tinubu, is one of several measures announced by Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele.

Oyedele expressed hope that other marketers would follow the NNPC's example, as the sharp increase in crude and petrol prices is not anticipated to be a long-term issue. The government is also developing a comprehensive set of fiscal measures to bring inflation down to single digits in the near future.