“Households in Nigeria are facing increased hardships as petrol prices soar. This comes after enduring a challenging economic situation due to global supply chain disruptions over the past two years. The recent surge in petrol pump prices is adding to the financial strain of millions of people, whose incomes have already been affected by rising inflation in Africa’s most populous country. The cost of living crisis in Nigeria’s largest economy is being amplified by the average 15 percent increase in petrol prices, reaching as high as N617 per liter in Abuja, N568 in Lagos, and N620 in Kaduna, following the removal of petrol subsidies.
The removal of subsidies, along with other reforms implemented by the government led by Tinubu, is causing increasing difficulties for Nigerians. Many households are struggling to afford basic necessities, with rising food prices and petrol costs contributing to the challenges. Small businesses are also feeling the pressure, as the cost of production rises while sales decline.
The situation has led to a significant increase in food prices and a 200 percent rise in petrol costs since the beginning of the year. With food inflation reaching 25.25 percent, the majority of Nigerians who spend a significant portion of their income on food-related expenses are severely affected.
Moreover, the World Bank reports that the accelerating inflation has pushed an additional four million Nigerians into poverty during the first five months of the current year. The situation is particularly concerning as 63 percent of the population, approximately 133 million people, are now living in multidimensional poverty.
Despite some reforms introduced by the government, such as increasing foreign exchange liquidity and making efforts towards developing electric vehicles, the overall economic challenges and rising petrol prices are impacting the livelihoods of Nigerians. Many hope that the government will address these issues and provide effective solutions to alleviate the burden on the population.”
