The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to prioritise subsidised mass transportation and support for food production, saying the current fuel price relief initiative offers limited benefits to households facing rising living costs.

The organisation said the Nigerian National Petroleum Company Limited’s (NNPC) fuel discount would have a limited impact on household welfare because of its restricted coverage, calling for broader interventions to reduce transportation and food costs.

In a policy brief issued on Tuesday, CPPE Chief Executive Officer, Dr Muda Yusuf, recommended investment in high-capacity buses powered by compressed natural gas (CNG), electricity and other economically viable energy sources to reduce commuting expenses.

He said cheaper public transport could provide relief to millions of Nigerians, particularly low-income workers, students and small business operators, while reducing operating costs for businesses.

Yusuf also called for targeted support to farmers through improved access to fertilisers, agrochemicals, agricultural machinery and other productivity-enhancing inputs.

He said higher energy costs affect several stages of food production and distribution, including land preparation, irrigation, mechanisation, transportation and storage.

The CPPE chief executive argued that reducing these costs would help address the wider effects of rising fuel prices on household purchasing power.

On the NNPC intervention, Yusuf said the temporary relief measure should not be interpreted as a reversal of petrol subsidy removal, arguing that its scale and structure differ from the former nationwide subsidy regime.

According to the brief, the current intervention covers approximately 70 million litres of NNPC fuel supply monthly, against estimated national petrol consumption of 50 million litres daily.

He warned against restoring a broad-based petrol subsidy, saying it could renew fiscal pressures and divert public resources from infrastructure and other development priorities.

Yusuf also urged state governments to introduce targeted relief measures, including subsidised public transport and support for vulnerable households, with transparent funding arrangements and defined timelines.

He said the government should preserve market-based petroleum pricing while ensuring that temporary relief measures remain targeted, transparent and financially sustainable.