The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, has explained the difference between a fuel margin discount and a government subsidy amid controversy over the Federal Government’s proposed 30-day petrol discount.

Onanuga clarified the distinction in a statement posted on his X handle on Friday, following the government’s announcement of a 30-day discount at Nigerian National Petroleum Company Limited (NNPCL) outlets.

In the statement titled “Margin Discount and a Subsidy Are Not the Same,” the presidential aide explained that a margin discount occurs when fuel retailers reduce or temporarily waive their profit margins to lower the price paid by consumers.

He said the cost of the discount is borne by the retailer rather than the government.

“The ADC and NDC should carefully re-read this ministerial brief: Margin Discount and a Subsidy Are Not the Same,” Onanuga stated.

He added: “Every marketer adds a margin to the price it pays for the fuel it sells. A margin discount means the retailer chooses to take a smaller margin, or no margin at all, for a period, and passes the savings on to the customer. The cost of the discount is borne by the retailer alone.

“A subsidy is different. It is when the government pays part of the price the consumer would otherwise pay.”

Onanuga explained that government subsidies are funded through public revenue, which could otherwise be used for salaries, schools, hospitals and infrastructure.

He maintained that the Tinubu administration ended the petrol subsidy regime in 2023 and insisted that the proposed 30-day discount did not represent a return to the policy.

“That is the regime this administration ended in 2023, and it is not coming back,” he said.