The Centre for the Promotion of Private Enterprise has warned that bringing back universal petrol subsidy could cost Nigeria about N19.16tn every year.

CPPE Chief Executive Officer, Muda Yusuf, said the amount would put further pressure on the country’s already limited finances and could reduce funding for infrastructure, healthcare, education, security and agriculture.

He based the estimate on daily petrol consumption of about 50 million litres and a subsidy of roughly N1,050 per litre, translating to about N52.5bn daily and N1.575tn monthly.

Yusuf warned that restoring the subsidy could also increase government borrowing, debt-servicing costs and pressure on foreign exchange, while potentially discouraging private-sector investment.

The CPPE acknowledged that rising petrol prices have increased transportation, production and logistics costs for households and businesses.

However, it recommended targeted relief measures instead of returning to a universal subsidy, including improved public transport, electricity, healthcare, education and social protection.

The group also urged the government to ensure that the additional revenue from subsidy removal is used transparently to reduce the economic burden on Nigerians and improve living standards.